building today, for tomorrow ANNUAL REPORT 2014/2015
ANNUAL REPORT 2014/2015 I Table of Contents
01 Corporate Profi le 02 Corporate Strategy 06 Key Highlights 08 Signifi cant Events 11 Message from the Chairman & CEO 18 Corporate Structure 20 Trust Structure 21 Organisation Structure 22 Board of Directors 26 Management Team 30 Corporate Governance 40 Risk Management 43 Portfolio Analysis & Review 49 Operations Review 56 Property Portfolio 80 Financial Review 82 Corporate Liquidity & Financial Resources 84 Investor Relations 87 Corporate Social Responsibility
building today, for tomorrow ANNUAL REPORT 2014/2015
Further Information Visit us or download the Annual Report at www.mapletreelogisticstrust.com Corporate Profile
Mapletree Logistics Trust (“MLT”) is Our Vision Singapore’s first Asia-focused logistics To be the preferred real estate partner of choice real estate investment trust. Listed on to customers requiring high quality logistics and the Singapore Exchange Securities distribution spaces in Asia. Trading Limited in 2005, MLT invests in a diversified portfolio of quality, well located income-producing logistics Our Mission real estate in Singapore, Japan, To provide Unitholders with competitive total Hong Kong, South Korea, China, returns through regular distributions and growth in asset value. Malaysia and Vietnam.
The Manager, Mapletree Logistics Trust Management Ltd., is committed to providing Unitholders with competitive total returns through the following strategies: a. optimising organic growth and hence, property yield from the existing portfolio; b. making yield-accretive acquisitions of good quality logistics properties; and c. managing capital to maintain MLT’s strong balance sheet and provide financial flexibility for growth.
ANNUAL REPORT 2014/2015 01 Corporate Strategy
To provide Unitholders with competitive total returns through regular distributions and growth in asset value
Yield Optimisation on Existing Portfolio
• Tailor leasing strategy to meet local market conditions • Maintain a well staggered tenancy profile • Maintain balanced mix of SUAs and MTBs • Improve operational efficiency of properties • Optimise returns via asset enhancement, redevelopment or divestment of lower yielding assets Prudent Capital Management
Growth • Maintain a strong balance sheet Via Acquisitions & Development • Diversify sources of funding
• Disciplined acquisition of quality, well • Optimise cost of debt financing located assets that add scale and strategic • Manage exposure to market value to the portfolio fluctuations in interest rate • Offer attractive value proposition to customers and foreign exchange through in support of their regional expansion plans – appropriate hedging strategies “Follow-the-Client”
02 BUILDING TODAY, FOR TOMORROW In line with its mission to provide Unitholders with competitive total returns, the Manager follows a “Yield + Growth” strategy which focuses on the two key areas of optimising yield on existing assets and augmenting growth through acquisitions or development projects which offer attractive returns. Both areas are underpinned by a prudent risk and capital management approach.
Optimising Yield regional expansion needs. This is possible due to a strong on-the- ground presence which enables the Manager to understand Active Asset & Lease Management customers’ requirements, as well as MLT’s extensive range Through active asset and lease management, the Manager of product offerings throughout Asia Pacific. In cases where maintains a balanced, well occupied portfolio that is diversified there is a lack of available, suitable products in the markets, across the various geographies and customer trade sectors. MLT stands ready to partner its customers in development Its leasing strategy is tailored to meet local market conditions projects, in line with its “Follow-the-Client” approach. This as well as to optimise the overall portfolio rent. provides an attractive proposition to customers seeking an asset-light strategy to free up valuable capital and resources To this end, the Manager strives to maintain a balanced mix that can be channelled into growing their core businesses. of single-user assets (“SUAs”) and multi-tenanted buildings (“MTBs”) in its portfolio. SUAs provide portfolio stability with Sponsor’s Strong Commitment their longer lease periods and built-in rental escalations, The Sponsor, Mapletree Investments Pte Ltd, has been while MTBs enable MLT to capture rental upside during a developing logistics parks and facilities across Asia, especially buoyant rental market due to their shorter lease periods. in markets where there is a limited supply of investment grade warehouses. When completed and stabilised, and in the event In addition, the Manager ensures that its lease expiries are well the Sponsor divests these projects, they will be offered to staggered without concentration in any single year. It also seeks MLT for acquisition under the Right of First Refusal granted by to optimise yield by improving the operational efficiency and the Sponsor. reducing the operating costs of MLT’s properties. Capital Management Strategy Portfolio Rejuvenation The Manager continually reviews the relevance/positioning The Manager strives to achieve an optimal debt/equity structure of each property within the portfolio with a view to optimise to maximise distributions while maintaining sufficient financial their return and drive organic growth. Redevelopment and flexibility to fund acquisitions and asset enhancement initiatives. asset enhancement are options which the Manager will pursue to realise untapped potential or to enhance the value and The Manager’s capital management objectives are to: yield of the assets. Properties that are no longer relevant to • maintain a strong balance sheet by adopting an appropriate customers’ requirements may be considered for redevelopment and prudent capital structure; or divestment as a last resort. The divestment option will free • secure diversified funding sources from both financial up capital and provide MLT with greater financial flexibility to institutions and capital markets as MLT grows in size; acquire assets offering better yield. • optimise its cost of debt financing; and Pursuing Growth • manage the exposure arising from adverse market movements in interest rates and foreign exchange through Disciplined Acquisition Approach appropriate hedging strategies. The Manager is committed to pursuing acquisitions of quality, well located assets that meet its stringent investment criteria. The Manager’s debt management strategy calls for a These assets need to be capable of generating stable and diversified spread of debt maturities and maintaining sufficient growing income streams that will add scale and strategic financial liquidity. Interest rate exposure is actively managed value to the portfolio. In evaluating acquisition opportunities, through the use of interest rate swap contracts where feasible, the Manager maintains a disciplined approach to ensure and/or fixed rate borrowings. For currency risk management, that acquisitions provide sustainable, long-term returns to the Manager will as far as possible borrow in the same currency Unitholders and are yield-accretive in the medium term. as the underlying assets to provide some natural hedge while balancing interest and other cost considerations. The Manager Value Proposition to Customers also hedges the net income streams of MLT’s overseas assets The Manager’s value proposition to customers lies in its ability to manage foreign exchange exposure. to offer them innovative real estate solutions which meet their
ANNUAL REPORT 2014/2015 03 Smart Logistics Centre, South Korea
Building Scale in Target Markets
As part of our portfolio rebalancing strategy, we seek to increase our market presence in the higher growth markets to provide Unitholders with a strong and stable platform for future growth. During the year, we completed six accretive acquisitions of modern, well located assets in the target markets of China, Malaysia, South Korea and Singapore. Number of Acquisitions 6
Aggregate Value Total Gross Floor Area S$209m 244,000 sqm
Weighted Average Weighted Average Occupancy* NPI Yield* 99.3% 8.0% * Weighted by NLA * Weighted by NLA Key Highlights
Number of Properties Portfolio Occupancy Investment Properties
117 96.7% S$4.63b FY13/14: 111 FY13/14: 98.3% FY13/14: S$4.24b
NAV Per Unit Aggregate Leverage Average Cost of Debt
S$1.03 34.3% 2.1% FY13/14: S$0.97 FY13/14: 33.3% FY13/14: 1.9%
Gross Revenue by Geography Property Value by Geography (FY14/15) (As at 31 March 2015)
Singapore 46% Singapore 38% Japan 20% Japan 21% Hong Kong 14% Hong Kong 22% South Korea 9% South Korea 8% China 6% China 7% Malaysia 5% Malaysia 4% Vietnam <1% Vietnam <1%
06 BUILDING TODAY, FOR TOMORROW Gross Revenue Net Property Income (S$ million) (S$ million)
339.5 330.1 293.6 277.4 307.8 310.7 268.1 267.6
277.3 238.9
218.9 193.0
FY10 FY11/12 FY12/13 FY13/14 FY14/15 FY10 FY11/12 FY12/13 FY13/14 FY14/15
Amount Distributable to Unitholders Distribution Per Unit (S$ million) (cents)
199.9 8.24 2 7.50 179.72 184.9 7.35 166.4 6.69 6.86 162.41 6.09
130.1
FY10 FY11/12 FY12/13 FY13/14 FY14/15 FY10 FY11/12 FY12/13 FY13/14 FY14/15
12 months ended 31 December 12 months ended 31 March 3-month period (1 January 2011 to 31 March 2011)
Note: FY11/12 comprised five quarters ended 31 March 2012 due to a change in financial year-end from 31 December to 31 March. 1 Included the distribution of the gain from the divestments of 9 and 39 Tampines Street 92 amounting to S$2.24 million. 2 Included the partial distribution of the gain from the divestment of 30 Woodlands Loop amounting to S$2.48 million.
ANNUAL REPORT 2014/2015 07 SignificantEvents
July 2014
• MLT expanded its presence in South Korea with the KRW25.5 billion acquisition of Daehwa Logistics Centre1, a newly completed Grade-A dry warehouse located in the May 2014 country’s prime logistics hub, Gyeonggi-do. • For the third year running, Mapletree Logistics • Mapletree Logistics Trust (“MLT”) commenced its second Trust Management Ltd. (“MLTM”) was named one of redevelopment project in Singapore at 5B Toh Guan Singapore’s Top 50 Brands by Brand Finance. Road East. At an estimated cost of S$107 million, the • MLT received the Silver Award for Best Investor Relations property will be redeveloped into a modern, six-storey in the REITs & Business Trusts category at the Singapore ramp-up facility with a 2.7 times increase in gross floor Corporate Awards 2014. area (“GFA”) to 63,500 square metres (“sqm”).
• MLT extended its debt maturity profile with the issuance of USD40 million 6-year floating rate notes due 2020. August 2014
• MLT completed the MYR88.5 million acquisition of Flex Hub in Iskandar Malaysia. This is MLT’s fourteenth asset in Malaysia. June 2014
1 The property has since been renamed Mapletree Logistics Centre – Baekam 2. 2 The property has since been renamed Mapletree Logistics Centre – Majang 1.
08 BUILDING TODAY, FOR TOMORROW October 2014 • MLTM was named Frost & Sullivan’s 2014 Asia Pacific Logistics Infrastructure Developer of the Year. This is the third time that MLTM has received recognition for its excellent track record in growing market presence and managing logistics infrastructure development in the region. • MLT acquired two Grade-A logistics facilities in China from its Sponsor for RMB402.8 million: Mapletree December 2014 Zhengzhou Logistics Park (“MZLP”) and Mapletree • MLT strengthened its market position to 10 properties Yangshan Bonded Logistics Park (“MYBLP”). MZLP is MLT’s in Gyeonggi-do with the KRW21.4 billion acquisition of first asset in Zhengzhou, a major transportation hub in Smart Logistics Centre2. A Grade-A dry warehouse with a Henan province, while MYBLP is strategically located in GFA of 19,300 sqm, the property is located in Korea’s first the Shanghai Free Trade Zone. and largest fashion distribution park.
• MLT issued JPY4.5 billion 8-year floating rate notes due 2023, extending its average debt maturity to 3.6 years as at 31 March 2015. • MLT announced an AEI at Moriya Centre in Japan for the construction of a new four-storey dry warehouse to cater for the business expansion of existing tenant Nippon Express. At an estimated cost of JPY1,409 million, the AEI will increase the GFA by 26% to 43,700 sqm.
• MLT acquired 190A Pandan Loop, a purpose-built food distribution centre in Singapore, for S$34.0 million. March 2015 In addition to good building specifications and prime location, the property also offers organic growth potential with its under-utilised plot ratio. • MLT completed Phase 2 of solar panel installation at five Japan properties. The asset enhancement initiative (“AEI”) has provided an additional revenue stream for MLT. November 2014
ANNUAL REPORT 2014/2015 09 From Left: Mr Paul Ma Kah Woh Chairman & Non-Executive Director Ms Ng Kiat Executive Director & CEO
10 BUILDING TODAY, FOR TOMORROW Message from the Chairman & CEO
“FY14/15 was a year of focus and delivery for MLT. We made further progress towards our long-term strategic goals, which have strengthened our business and positioned us well for the future. Additionally, with our firm focus on active asset management and prudent financial management, we have delivered another set of stable returns to our Unitholders.”
Dear Unitholders, S$3.08 billion, which represents an eightfold increase from the S$371 million market capitalisation at the time of its listing in The Asia and Pacific region remained the world’s growth 2005. Unitholders who have held MLT units since its listing would leader in 2014 with an economic growth of 5.6%, compared to have enjoyed a total return of approximately 175%2, consisting 1 global growth of 3.4% . Nonetheless, growth in the region had of 83% in capital appreciation and a distribution yield of 92%. decelerated from the 5.9% registered in 2013, mainly due to slowdowns in China and Japan. However, there have been some challenges during the year. Our Singapore portfolio experienced downtime at several In the Asian markets that Mapletree Logistics Trust (“MLT” or the single-user assets (“SUAs”) that were converted to multi-tenanted “Trust”) operates in, demand for logistics space has remained buildings (“MTBs”), leading to pressure on occupancy stable, underpinned by growth in domestic consumption during the transition period, and higher property expenses. and expansion by third party logistics players. However, with In addition, revisions to regulatory policies on the use of persistent uncertainties in the global economy, some of our industrial space, including a tightening of JTC’s subletting rules, tenants have turned increasingly cautious and cost sensitive. have contributed to a more challenging leasing environment Competition for acquisition of logistics assets continued to in Singapore. Nonetheless, MLT’s geographic diversification intensify as investors were attracted by the relatively higher across seven markets in Asia has enabled us to balance out the yields in this sector compared to other asset classes. changing regulatory and market conditions in individual markets to deliver overall stable returns to Unitholders. Against this backdrop, FY14/15 was a year of focus and delivery for MLT. We made further progress towards our long-term Through proactive marketing and leasing efforts, MLT continued strategic goals – specifically, to expand MLT’s presence in the to report a high portfolio occupancy of 96.7% with positive higher growth markets and to rejuvenate our portfolio through rental reversion of 8%, which was contributed mainly by leases selective asset enhancement initiatives. These efforts have in Hong Kong and Singapore. As compared to last year, strengthened our business and positioned us well for the future. the Singapore portfolio registered a lower occupancy rate of Additionally, with our firm focus on active asset management 94.4%, while the other six geographic markets achieved higher and prudent financial management, we have delivered another or similar levels of occupancy, ranging from 97.9% to 100%. set of stable returns to our Unitholders. The weighted average lease expiry (by net lettable area) was approximately 4.3 years, with more than 43% of the leases Performance Highlights expiring after FY17/18. Diversity of our customer mix was Gross revenue for FY14/15 reached S$330.1 million while net maintained with not one of our 410 customers accounting for property income (“NPI”) was S$277.4 million, representing a more than 5% of total revenue. year-on-year growth of 6% and 4% respectively. The improved performance was primarily due to contribution from the six As at 31 March 2015, MLT’s portfolio of 117 assets was valued accretive acquisitions completed during the year, a full-year at S$4.63 billion. This represents an increase of S$396 million contribution from Mapletree Benoi Logistics Hub (“MBLH”) or 9% compared with S$4.24 billion in the previous year. and stronger performance from existing assets. The amount The higher valuation was largely due to the recognition of distributable to Unitholders grew by 3% year-on-year to S$84 million net fair value gain in investment properties, S$184.9 million while distribution per unit (“DPU”) increased attributable mainly to properties in Hong Kong, and 2% to 7.50 cents. approximately S$271 million in acquisitions and capital expenditure. Net asset value per unit was S$1.03 as at MLT’s unit price rose 19% in FY14/15 to close at S$1.245 on 31 March 2015, a 6% increase compared with S$0.97 31 March 2015. This has brought MLT’s market capitalisation to a year ago.
1 International Monetary Fund, World Economic Outlook, April 2015. 2 Total return is the sum of actual distributions and capital appreciation in MLT’s unit price for the period between MLT’s Initial Public Offering (“IPO”) on 28 July 2005 and 31 March 2015, expressed as a percentage of the IPO issue price of S$0.68.
ANNUAL REPORT 2014/2015 11 Message from the Chairman & CEO
Building Financial Strength Building Future Growth Maintaining a strong and healthy balance sheet has always Consistent with our portfolio rejuvenating strategy, we are been a core element of MLT’s strategy. During FY14/15, constantly looking for asset enhancement or redevelopment we procured loans and issued medium term notes of opportunities to unlock value from our assets and to improve approximately S$336 million with tenures of 3 to 8 years their future earnings potential. Older assets that could no to finance acquisitions and for refinancing purposes. longer offer competitive long-term returns and with limited Through these efforts, debt due in FY15/16 has been reduced redevelopment potential may be considered for divestment as to approximately S$57 million or about 3% of total debt, a last option. The capital released may then be recycled into while the weighted average debt maturity was maintained acquisitions offering modern specifications and higher returns, at approximately 3.6 years. thereby improving the overall quality of the portfolio.
The Distribution Reinvestment Plan (“DRP”) continued to be Following the successful completion of MBLH last year, implemented in FY14/15, with approximately S$27.5 million we launched a second redevelopment project in Singapore at cash retained and 24.4 million units issued during the year. 5B Toh Guan Road East. The project comprises the construction The DRP proceeds were deployed to fund MLT’s capital of a modern, six-storey ramp-up logistics facility with a gross expenditure requirements. floor area (“GFA”) of 63,500 square metres (“sqm”), representing a 2.7 times increase from 23,500 sqm before redevelopment. As at 31 March 2015, MLT’s aggregate leverage stood at The S$107 million project is on track for completion in 1Q FY16/17. 34.3%. Assuming a gearing of 40%, the Trust would have a debt headroom of about S$460 million which could be In FY15/16, we will be embarking on two other asset utilised to fund investment opportunities. Our interest cover rejuvenation projects that will contribute to future growth: ratio remained healthy at 7.5 times and the weighted average • Redevelopment of 76 Pioneer Road in Singapore. borrowing cost was 2.1% per annum with 80% of the debts Representing MLT’s third redevelopment project, this hedged into fixed interest rates. To mitigate the impact of project entails the construction of a five-storey ramp-up foreign exchange on distribution, about 80% of income logistics facility with modern specifications. The total stream for FY15/16 has been hedged into or will be derived GFA upon completion will be approximately 72,000 sqm, in Singapore dollars. representing a 1.8 times increase from the 40,000 sqm before redevelopment. The S$117 million project is expected Building Scale in Target Markets to commence in mid-FY15/16 and complete in 4Q FY17/18. We continue to make good progress in rebalancing MLT’s • Asset enhancement initiative (“AEI”) at Moriya Centre in portfolio to the higher growth markets via accretive acquisitions. Japan. This involves the construction of a new four-storey Amidst stiff competition for investment opportunities, we remain warehouse to support the business growth requirements selective and disciplined in our investment approach, of the existing tenant, Nippon Express. At an estimated maintaining focus on acquisitions that will improve the quality development cost of JPY1,409 million ( S$16 million), of our portfolio and provide long-term sustainable returns. the AEI will increase the GFA by 26% to 43,700 sqm. The AEI is scheduled for completion in March 2016. In FY14/15, we completed the acquisition of six properties in China, Malaysia, South Korea and Singapore with an aggregate As of 31 March 2015, the Sponsor manages a total of value of approximately S$209 million. Offering NPI yields of 25 logistics developments, comprising nine completed 6.5% to 8.4%, these yield-accretive acquisitions will help MLT’s projects and 16 projects under construction. Spanning across competitive position and future growth potential in our target Hong Kong, China, Japan, Malaysia and Vietnam, they have a markets. Following these acquisitions, China, Malaysia and combined estimated development cost in excess of S$2 billion South Korea account for 20% of MLT’s revenue base, and a GFA of approximately 2.2 million sqm. When completed an increase from 16% two years ago. and stabilised, and in the event the Sponsor divests these projects, they will be offered to MLT for acquisition on a right of first refusal basis.
12 BUILDING TODAY, FOR TOMORROW Artist impression of 5B Toh Guan Road East redevelopment in Singapore
Outlook Award and Appreciation Looking ahead, the pace of global economic recovery is likely MLT was conferred Best Investor Relations (Silver) in the REITs to remain uneven with Asia continuing to grow at a slower pace. and Business Trusts category at the Singapore Corporate Nonetheless, demand for logistics space in the Asian markets Awards 2014. We are honoured to receive this recognition and where MLT operates in is expected to remain stable although will continue to actively engage Unitholders through regular rental growth may be subdued. and transparent communications.
About 24% of MLT’s leases (by net lettable area) will be expiring We would like to thank our Board of Directors and employees in the coming year, of which 10% are leases for SUAs and for their hard work and commitment that have contributed to 14% are leases for MTBs. In Singapore, we expect that some the success of MLT. Most importantly, we thank our Unitholders, of the SUAs will be converted to MTBs which may exert customers and business partners for their invaluable and short-term pressure on occupancy during the transition period, continuing support. and keep property expenses on an uptrend. In Hong Kong, the current supply squeeze in logistics facilities will likely continue to support rental growth and high occupancies for MLT’s properties. In Japan, income from our facilities is expected to remain stable, underpinned by a weighted average lease expiry of six years.
The year ahead may throw up some challenges in view of the Mr Paul Ma Kah Woh headwinds we face from the conversion of SUAs to MTBs. We will Chairman & Non-Executive Director maintain focus on active asset and lease management with a view to achieve optimal portfolio occupancy. At the same time, we will continue to pursue strategic acquisition opportunities and asset enhancement initiatives, while maintaining a prudent capital management approach. With our actions firmly focused on “Building Today, For Tomorrow”, they will stand us in good Ms Ng Kiat stead for the future. Executive Director & CEO
ANNUAL REPORT 2014/2015 13 14 BUILDING TODAY, FOR TOMORROW ANNUAL REPORT 2014/2015 15 Expeditors, Singapore
5B Toh Guan Road East 76 Pioneer Road Moriya Centre AEI Redevelopment Redevelopment S$107m S$117m JPY1,409m Estimated Cost Estimated Cost Estimated Cost
GFA: 2.7 times increase to GFA: 1.8 times increase to GFA: 1.3 times increase to 63,500 sqm 72,000 sqm 43,700 sqm Building Future Growth
Through selective redevelopment and asset enhancement projects, we have taken substantial steps forward with our strategy to unlock value and rejuvenate the portfolio. These initiatives will enhance the competitive position and future growth profi le of our portfolio. Corporate Structure
Mapletree Logistics Trust
MapletreeLog Treasury MapletreeLog Ouluo (Shanghai) Ltd. MapletreeLog Greatdeal Ltd. Company Pte. Ltd. (Incorporated in Cayman) (Incorporated in Cayman)
MapletreeLog Treasury MapletreeLog AIP (Guangzhou) Ltd. MapletreeLog GTC (HKSAR) Ltd.1 Company (HKSAR) Ltd.1 (Incorporated in Cayman) (Incorporated in Cayman) (Incorporated in Cayman) MapletreeLog AIP (Guangzhou) MapletreeLog PF (HKSAR) Ltd.1 (HKSAR) Limited (Incorporated in Cayman) (Incorporated in Hong Kong) Guangzhou Mapletree Mapletree Topaz Ltd. Eastern American Log Limited (Incorporated in Cayman) (Incorporated in PRC) Mapletree Opal Ltd.1 (Incorporated in Cayman) MapletreeLog Seastar (Xian) Ltd. (Incorporated in Cayman) MapletreeLog ST (HKSAR) Ltd. (Incorporated in Cayman) MapletreeLog Seastar (Xian) (HKSAR) Limited Greatdeal Finance Limited (Incorporated in Hong Kong) (Incorporated in BVI) Mapletree Logistics Genright Investment Limited Warehouse (Xian) Co., Ltd. (Incorporated in Hong Kong) (Incorporated in PRC)
MapletreeLog Haisan (Shanghai) Ltd. Mapletree Lingang Ltd. (Incorporated in Cayman) (Incorporated in Cayman) Mapletree Lingang Logistics MapletreeLog Northwest (Shanghai) Ltd. Warehouse (Shanghai) Co., Ltd. (Incorporated in Cayman) (Incorporated in PRC) MapletreeLog Northwest (Shanghai) (HKSAR) Limited Mapletree Emerald (HKSAR) (Incorporated in Hong Kong) Limited (Incorporated in Hong Kong) MapletreeLog Jinda Warehouse (Shanghai) Co., Ltd. Mapletree Emerald (ZILP) (Incorporated in PRC) Limited (Incorporated in PRC) MapletreeLog Integrated (Shanghai) (Cayman) Ltd. (Incorporated in Cayman) MapletreeLog Integrated (Shanghai) (HKSAR) Limited (Incorporated in Hong Kong) MapletreeLog Integrated (Shanghai) Co., Ltd. (Incorporated in PRC)
Mapletree WND (Wuxi) (HKSAR) Limited (Incorporated in Hong Kong) Mapletree Logistics Development (Wuxi) Co., Ltd. (Incorporated in PRC)
First Tier Subsidiaries Second Tier Subsidiaries Third Tier and below Subsidiaries
18 BUILDING TODAY, FOR TOMORROW MapletreeLog Malaysia MapletreeLog Oakline Majang 1 (Korea) Pte. Ltd. MapletreeLog VSIP 1 Holdings Pte. Ltd. (Korea) Pte. Ltd. Warehouse Pte. Ltd. Majang 1 Logistics MapletreeLog (M) MapletreeLog First Korea Co., Ltd. Mapletree VSIP 1 Holdings Sdn. Bhd. Korea (Yujoo) Co., Ltd. (Incorporated in Korea) Warehouse (Incorporated in Malaysia) (Incorporated in Korea) (Cayman) Co., Ltd. Hobeob 1 (Korea) (Incorporated in Cayman) Pancuran Baiduri MapletreeLog MQ (Korea) Pte. Ltd. Sdn. Bhd. Pte. Ltd. Mapletree First (Incorporated in Warehouse Malaysia) MapletreeLog Korea (Vietnam) (Yongin) Co., Ltd. Co., Ltd. Zentraline Sdn. (Incorporated in Korea) Bhd. (Incorporated in Vietnam) (Incorporated in Kingston (Korea) Pte. Ltd. Malaysia) MapletreeLog MapletreeLog Gyoda Kingston Co., Ltd. (Japan) (HKSAR) Limited (Incorporated in Korea) (Incorporated in Hong Kong) Pyeongtaek (Korea) Pte. Ltd. MapletreeLog Pyeongtaek Co., Ltd. (Incorporated in Korea)
Iljuk (Korea) Pte. Ltd. MapletreeLog Iljuk Korea Co., Ltd. (Incorporated in Korea) Dooil (Korea) Pte. Ltd. MapletreeLog Dooil Co., Ltd. (Incorporated in Korea)
Jungbu Jeil (Korea) Pte. Ltd. MapletreeLog Jungbu Jeil Co., Ltd. (Incorporated in Korea)
Miyang (Korea) Pte. Ltd. MapletreeLog Miyang Co., Ltd. (Incorporated in Korea)
Seoicheon (Korea) Pte. Ltd. Seoicheon Logistics Co., Ltd. (Incorporated in Korea)
Baekam (Korea) Pte. Ltd. Baekam Logistics Korea Co., Ltd. (Incorporated in Korea)
All subsidiaries are 100% wholly-owned. 1 The Company has established a principal place of business in Hong Kong.
ANNUAL REPORT 2014/2015 19 Trust Structure
Sponsor Mapletree Investments Other Unitholders Pte Ltd
Holdings of Units Distributions
Management Acts on Behalf Fees of Unitholders Trustee Manager Mapletree Mapletree Logistics Trust HSBC Institutional Management Ltd. Logistics Trust Trust Services (Singapore) Limited Management Trustee Fees Services
Ownership of Assets Net Property Income
Property Management and Other Fees Property Manager Mapletree Property Property Portfolio Management Pte. Ltd. Property Management and Other Services
20 BUILDING TODAY, FOR TOMORROW Organisation Structure
Mapletree Logistics Trust Management Ltd.
Board of Directors Mr Paul Ma Kah Woh (Chairman & Non-Executive Director) Mr Tarun Kataria (Independent Director) Mr Tan Ngiap Joo (Independent Director & AC Chairman) Mr Hiew Yoon Khong (Non-Executive Director) Mr Cheah Kim Teck (Independent Director & AC Member) Mr Wong Mun Hoong (Non-Executive Director) Mr Pok Soy Yoong (Independent Director & AC Member) Mr Chua Tiow Chye (Non-Executive Director) Mr Wee Siew Kim (Independent Director & AC Member) Ms Ng Kiat (Executive Director & CEO) Mrs Penny Goh (Independent Director)
Audit and Risk Committee (“AC”) Joint Company Secretaries Mr Wan Kwong Weng Ms See Hui Hui
Chief Executive Officer Ms Ng Kiat
Senior Vice President, Chief Financial Officer Head, Asset Management Portfolio Management & Ms Wong Mei Lian Ms Chen Tze Hui Investor Relations Mr Gregory Lui
Headquarters Countries Investment China Singapore Director General Manager General Manager Mr Ong Khian Heng Mr Nick Chung Ms Jean Kam Finance Hong Kong South Korea Vice President General Manager General Manager Mr Choong Chia Yee Mr David Won Mr Jacob Chung Treasury Japan Vietnam Vice President General Manager General Manager Ms Natalie Wong Ms Yuko Shimazu Mr Victor Liu Investor Relations Malaysia Vice President Deputy General Manager Ms Lum Yuen May Mr Winston Lok
ANNUAL REPORT 2014/2015 21 Board of Directors
Mr Paul Ma Kah Woh Mr Tan Ngiap Joo Chairman & Non-Executive Director Independent Director & AC Chairman Mr Paul Ma Kah Woh is the Chairman of Mr Tan Ngiap Joo is an Independent the Board of Directors of the Manager. Director and the Chairman of the Audit and Risk Committee of the Manager. He is also a Director and a member of the Audit and Risk Committee, the Mr Tan is concurrently the Chairman and Executive Resource and Compensation Director of United Engineers Limited Committee, the Investment Committee and a Director of Oversea-Chinese and the Transaction Review Committee Banking Corporation Limited (“OCBC”). of the Sponsor. In addition, he is also a Director of China Fishery Group Limited (listed on the Concurrently, Mr Ma is a Director of Mainboard of the SGX-ST). Nucleus Connect Pte Ltd, Keppel Infrastructure Fund Management Pte Ltd Mr Tan had held various senior positions (Trustee-Manager of Keppel Infrastructure in the banking and finance sector which Trust), PACC Offshore Services Holdings include the positions of Deputy President Ltd (a company listed on the mainboard of OCBC Bank Singapore, General of the SGX-ST) as well as of two private Manager of OCBC Bank, Australia Branch, equity firms, namely CapitaLand Chairman of Bleakeys Limited Australia China Development Fund Pte Ltd and and Chief Executive Officer (“CEO”) of CapitaLand China Development Fund II Bank of Singapore (Australia) Limited. Limited. In addition, Mr Ma is a member of the National Heritage Board where he Mr Tan holds a Bachelor of Arts degree also chairs their Audit Committee. from the University of Western Australia.
Mr Ma is a Fellow of the Institute of Chartered Accountants in England and Wales as well as a member of the Institute of Singapore Chartered Accounts.
22 BUILDING TODAY, FOR TOMORROW Mr Cheah Kim Teck Mr Pok Soy Yoong Mr Wee Siew Kim Independent Director & AC Member Independent Director & AC Member Independent Director & AC Member Mr Cheah Kim Teck is an Independent Mr Pok Soy Yoong is an Independent Mr Wee Siew Kim is an Independent Director and a Member of the Audit and Director and a Member of the Audit and Director and a Member of the Audit and Risk Committee of the Manager. Risk Committee of the Manager. Risk Committee of the Manager.
Mr Cheah is currently Managing Director, Mr Pok is concurrently a Non-Executive Mr Wee is currently the Group CEO of Business Development of Jardine Cycle Director of the Inland Revenue Authority Nipsea group which manufactures and & Carriage Limited and was formerly the of Singapore and Pavilion Foundation sells decorative and industrial paint and CEO, Group Motor Operations (excluding Limited. In addtion, he is also the coatings for buildings, construction, those held by PT Astra International Tbk) Chairman of the Board of Perennial automobile and industrial applications. until he stepped down from his position China Retail Trust Management Pte. Ltd. In addition, he is the Chairman of the in December 2013. Prior to joining the (the trustee-manager of Perennial China Board of ES Group (Holdings) Limited Jardine Cycle & Carriage group, Retail Trust). which is listed on the Catalist board of Mr Cheah held several senior marketing the SGX-ST and a Director of SBS Transit positions in multinational companies, Mr Pok has over 30 years of working Ltd which is listed on the Mainboard of namely, McDonald’s Restaurant, experience in the areas of Singapore the SGX-ST. Between 2001 and 2011, Kentucky Fried Chicken and Coca-Cola. direct tax and international tax. He is Mr Wee was a Member of Parliament for among the leading tax experts in the Ang Mo Kio Group Representative Mr Cheah is also a Director of Singapore Singapore on complex tax transactions Constituency in Singapore. Pools (Private) Limited and the Deputy and issues, and is particularly noted for his Chairman of Sport Singapore. leading role in the creation of the taxation Prior to joining the Nipsea group, framework for real estate investment Mr Wee had held various appointments Mr Cheah holds a Master of Marketing trusts. Prior to his retirement from in the engineering, business development degree from the University of Lancaster, professional practice on 31 December and management functions within the United Kingdom. 2008, Mr Pok was the Head of Tax with Singapore Technologies group since Ernst & Young Singapore as well as a 1984 which involved operating stints member of Ernst & Young Singapore in the United States of America, China, Management Committee. He also served Europe and Singapore. From 2002 to as the Chief Operating Officer (Tax) of 2009, he served as the Deputy CEO the Ernst & Young Far East Tax Practices, and President (Defence Business) of covering 15 countries. Singapore Technologies Engineering Limited which is listed on the Mainboard of the SGX-ST.
Mr Wee holds a Bachelor of Science (Aeronautical Engineering) (First Class Honours) degree from the Imperial College of Science and Technology and a Master of Business Administration degree from the Graduate School of Business, Stanford University. He is a Fellow of the City and Guilds Institute.
ANNUAL REPORT 2014/2015 23 Board of Directors
Mrs Penny Goh Mr Tarun Kataria Mr Hiew Yoon Khong Independent Director Independent Director Non-Executive Director Mrs Penny Goh is an Independent Mr Tarun Kataria is an Independent Mr Hiew Yoon Khong is a Non-Executive Director of the Manager. Director of the Manager. Director of the Manager.
Mrs Goh is currently Head of the Mr Kataria was until recently Advisor Mr Hiew is concurrently the Group CEO Corporate Real Estate practice group and to Religare Capital Markets and, and Executive Director of the Sponsor. a member of the Executive Committee between 2010 and 2013, their CEO, He is also a Director of Mapletree of Allen & Gledhill LLP, a leading law firm India. Prior to joining Religare Capital Industrial Trust Management Ltd. in Singapore, of which she has been a Markets, Mr Kataria held various senior (the manager of Mapletree Industrial partner since 1982. She acts for public positions within HSBC group which Trust), of Mapletree Commercial Trust listed corporations and multinational included the roles of Managing Director Management Ltd. (the manager of institutional investors in all aspects and Head of Global Banking and Mapletree Commercial Trust), and of of corporate real estate transactions. Markets with HSBC India, Vice-Chairman Mapletree Greater China Commercial Her areas of specialisation are real of HSBC Securities and Capital Markets Trust Management Ltd. (the manager of estate investment trusts, private equity India Pvt. Limited, Non-Executive Director Mapletree Greater China Commercial property funds, regional investments, of HSBC InvestDirect Limited and Trust). real estate mergers and acquisitions, Managing Director, Head of Institutional joint development schemes and asset Sales, HSBC Global Markets. Mr Hiew joined the Sponsor in 2003 restructuring. In addition, she is also a as Group CEO. Mr Hiew has since led Director of Trailblazer Foundation Ltd. Mr Kataria holds a MBA (Finance) the Mapletree Group from a Singapore- from The Wharton School, University centric asset-owning real estate company Mrs Goh holds a Bachelor of Law of Pennsylvania. He is a Chartered worth S$2.3 billion to a fast-growing (Honours) degree from the National Accountant of Institute of Chartered regional company with total owned University of Singapore and is a member Accountants of India. and managed assets in excess of of the Singapore Bar. She is consistently S$25 billion. In the process, the Sponsor recommended as a leading specialist in also built a substantial and growing corporate real estate practice by several capital management business. legal publications including Chambers Asia-Pacific, IFLR 1000, The Legal 500 From 2003 to 2011, Mr Hiew was Asia Pacific, Best Lawyers and The concurrently Senior Managing Director International Who’s Who of Real Estate (Special Projects) in Temasek Holdings Lawyers. (Private) Limited. Prior to joining the Sponsor, Mr Hiew held various senior positions in the CapitaLand group of companies. His past directorships included serving as a member on the Boards of Changi Airport International and Sentosa Development Corporation, as well as the Board of Trustees of the National University of Singapore.
24 BUILDING TODAY, FOR TOMORROW Mr Wong Mun Hoong Mr Chua Tiow Chye Ms Ng Kiat Non-Executive Director Non-Executive Director Executive Director & CEO Mr Wong Mun Hoong is a Non-Executive Mr Chua Tiow Chye is a Non-Executive Ms Ng Kiat is an Executive Director Director of the Manager. Director of the Manager. He was and CEO of the Manager. Prior to previously the CEO of the Manager. this appointment in July 2012, Mr Wong is concurrently the Group Chief Ms Ng was Chief Investment Officer, Financial Officer and a member of the Mr Chua is the Group Chief Investment Southeast Asia of the Sponsor where Executive Management Committee of the Officer of the Sponsor and is responsible she was responsible for managing Sponsor. He oversees the Finance, Tax, for executing the Sponsor’s international the acquisitions, development and Treasury, Private Funds Management, real estate investments and developments, operations of the Sponsor’s investment Risk Management and Information including entry strategies into new portfolio in the region. System & Technology functions of the markets and development of new Sponsor. In addition, he is a Director of products. Concurrently, Mr Chua is the Ms Ng has over 16 years of experience Mapletree Industrial Trust Management Regional CEO, North Asia and New in real estate and investment. Prior to Ltd. (the manager of Mapletree Industrial Markets of the Sponsor where he has joining the Sponsor in 2007, she was Trust), of Mapletree Commercial Trust direct responsibility over the Sponsor’s with Temasek Holdings (Private) Limited Management Ltd. (the manager of non-REIT assets and growth in these for five years managing private equity Mapletree Commercial Trust) and of markets, i.e. South Korea, Hong Kong fund investments. Preceding that, CapitaLand Township Development Fund SAR, Australia, Japan, USA, Europe as Ms Ng was Vice President at the Pte. Ltd.. well as other opportunistic markets. CapitaLand group where she was responsible for real estate investments Before joining the Sponsor in 2006, Mr Chua also serves as a Director of and cross-border mergers and Mr Wong worked in the investment Mapletree Greater China Commercial acquisitions activities in Southeast banking sector in Asia for 14 years. Trust Management Ltd. (the manager of Asia and Europe. He was with Merrill Lynch & Co. for the Mapletree Greater China Commercial 10 years immediately prior to joining the Trust). Ms Ng was awarded the Singapore Sponsor, where he worked in Singapore, Technologies scholarships for her Hong Kong and Tokyo. He was a Director Prior to joining the Sponsor in 2002, undergraduate and postgraduate and the Head of its Singapore Investment Mr Chua held senior positions with studies at Imperial College of Science Banking Division prior to leaving Merrill various companies including Vision and Technology, University of London, Lynch & Co. in late 2005. Century Corporation Ltd, Ascendas Pte where she graduated with Masters in Ltd, Singapore Food Industries Pte Ltd Engineering (First Class Honours) in Mr Wong graduated with a Bachelor and United Overseas Bank Ltd. Aeronautical Engineering. of Accountancy (Honours) degree from the National University of Singapore in 1990. He holds the professional designation of Chartered Financial Analyst from the CFA Institute of the United States. He attended the Advanced Management Programme at INSEAD Business School.
ANNUAL REPORT 2014/2015 25 Management Team
01 02 03 04
05 06 07 08
09 10 11 12
13 14 15
26 BUILDING TODAY, FOR TOMORROW 01. Ms Ng Kiat 04. Mr Gregory Lui 06. Mr Choong Chia Yee Executive Director & Chief Executive Senior Vice President, Portfolio Vice President, Finance Officer Management & Investor Relations Mr Choong Chia Yee is responsible for Ms Ng Kiat is an Executive Director and Mr Gregory Lui oversees the Portfolio handling MLT’s financial and management CEO of the Manager. Please refer to Management and Investor Relations reporting as well as the day-to-day her profile under the Board of Directors functions in MLT, and provides investment running of finance operations. section of this Annual Report on page 25. analysis and evaluation of opportunities to grow the portfolio. Mr Choong has more than 16 years 02. Ms Wong Mei Lian of experience in accounting, finance, Chief Financial Officer Mr Lui has over 20 years of equity budgeting, tax, initial public offering research and management experience. and audit. Prior to joining the Manager, Ms Wong Mei Lian is responsible for Prior to joining the Manager, he was he held various finance positions in financial reporting, budgeting, treasury Head of Asean Property Research and both SGX-ST and Bursa Malaysia listed and taxation matters. Head of Regional REITs at Deutsche Bank companies including CapitaMalls Asia AG. Previously a highly-ranked equity Limited, RichLand Group Limited and Prior to her appointment as Chief analyst, he was responsible for directing Farm’s Best Berhad. Financial Officer in May 2010, she was research strategy for the Singapore equity Senior Vice President, Treasury of the market and regional real estate, as well as 07. Ms Natalie Wong Sponsor since November 2007, where managing the Singapore research team. Vice President, Treasury she was in charge of the overall treasury In addition, he also has extensive management of the Sponsor. experience in primary transactions Ms Natalie Wong is responsible for including IPOs. handling MLT’s capital management and Ms Wong has extensive experience corporate finance operations. in corporate finance, treasury and 05. Mr Ong Khian Heng Prior to joining the Manager, Ms Wong investment banking. From 1999 to 2007, Director, Investment she held various positions in CapitaLand worked in transactions advisory in group and Singapore Power Ltd. Earlier Mr Ong Khian Heng is responsible for PricewaterhouseCoopers LLP handling in her career, Ms Wong worked in the sourcing and evaluating suitable assets numerous cross-border deals and merchant banking arm of Schroders, and opportunities to grow the portfolio, mergers and acquisitions projects. where she was responsible for the including in markets where MLT does not She also has extensive finance and origination, structuring and syndication have a presence. treasury experience as a finance manager of debt in Southeast Asia. in Honeywell International Inc. and Zagro Prior to his appointment as Director, Asia Limited, as well as audit experience 03. Ms Chen Tze Hui Investment in June 2014, Mr Ong had with KPMG Singapore. Head, Asset Management held other positions in the Manager, including General Manager of South Korea 08. Ms Lum Yuen May Ms Chen Tze Hui is responsible for the and before that, General Manager of Vice President, Investor Relations portfolio’s asset management strategies Vietnam. Prior to that, he was Senior and operations throughout Asia. Manager of the Sponsor’s Regional Ms Lum Yuen May is responsible for Investment Department, responsible maintaining timely and transparent Ms Chen has extensive real estate for business development in India and communications with MLT’s Unitholders, experience in business development, identifying suitable investments and investors, analysts and the media. investment (acquisitions and divestments), development opportunities in India design development, asset management, and China. Ms Lum has many years of experience in marketing and lease management. the financial industry, including five years She has also worked with several large in equities research. Prior to joining the developers and consultancy firms. Manager, she spent more than 10 years managing investor relations at various SGX-ST listed companies, including a real estate investment trust.
ANNUAL REPORT 2014/2015 27 Management Team
09. Mr Nick Chung 11. Ms Yuko Shimazu 14. Mr Jacob Chung General Manager, China General Manager, Japan General Manager, South Korea Mr Nick Chung is responsible for Ms Yuko Shimazu is responsible for Mr Jacob Chung is responsible for sourcing and evaluating acquisition sourcing and evaluating acquisition sourcing and evaluating acquisition opportunities for MLT as well as managing opportunities for MLT as well as opportunities for MLT as well as the existing assets in China. managing the existing assets in Japan. managing the existing assets in South Korea. Mr Chung has more than 16 years of Ms Shimazu has been in the real estate extensive real estate experience in industry for more than 16 years. Mr Chung has over 23 years of real China. Prior to joining the Manager in She started her career in CB Richard Ellis estate-related professional experience December 2009, Mr Chung was Head of before moving on to Colliers, where she in various companies. Prior to joining the Asset Management at the China office of gained extensive market and industry Manager in 2013, Mr Chung was Vice NYSE-listed AMB Property Corporation. knowledge nationwide, providing real President of SK Networks where his main Prior to this, he held the position of estate consultancy and leasing services duty was to lead and oversee SK Group’s Director, Asset Services with ZIC property to foreign capital companies. Her other real estate liquidation plan as well as consultants and Premas International real estate business experience includes several other development projects. in China. asset management of hotel and retail Mr Chung started his career with a local properties with Panorama Hospitality, city planning firm in 1992 and has held 10. Mr David Won a subsidiary of the Morgan Stanley group. positions in various reputable companies including Samsung E&C, CBRE Korea General Manager, Hong Kong 12. Mr Winston Lok and Pacific Star Korea. Mr David Won is responsible for sourcing Deputy General Manager, Malaysia and evaluating acquisition opportunities 15. Mr Victor Liu for MLT as well as managing the existing Mr Winston Lok is responsible for General Manager, Vietnam assets in Hong Kong. sourcing and evaluating acquisition opportunities for MLT as well as Mr Victor Liu is responsible for sourcing Prior to his appointment as General managing the existing assets in Malaysia. and evaluating business opportunities Manager, Hong Kong in October 2011, for MLT as well as managing the existing Mr Won was Head of Investment Prior to joining the Manager in assets in Vietnam. and Asset Management of the Hong November 2012, Mr Lok was Deputy Kong logistics team since April 2010. General Manager of North Vietnam of Mr Liu has been with the Manager since He started his appointment with the the Sponsor since July 2010, where he November 2012. Prior to his appointment Manager in May 2006 as Finance oversaw the implementation, leasing and with the Manager, he was with the Manager of the Hong Kong logistics asset management of Mapletree Bac Sponsor (since April 2008) and was team. Prior to joining the Manager, Ninh Logistics Park, the Sponsor’s first based in Vietnam where he was involved Mr Won was Assistant Manager of project in North Vietnam, as well as the in various new development projects Budgetary and Forecasting with the sourcing of investment opportunities in including the development of logistics Hong Kong Housing Authority. North Vietnam. parks in Binh Duong and Bac Ninh.
13. Ms Jean Kam General Manager, Singapore Ms Jean Kam is responsible for sourcing and evaluating acquisition opportunities for MLT as well as managing the existing assets in Singapore.
Ms Kam has been with the Singapore logistics team since September 2007. She started her appointment with the Manager as Asset Manager and has since progressed to her current position as General Manager. Prior to joining the Manager, Ms Kam began her career with JTC Corporation, where she was involved in the development, marketing and lease management of JTC’s industrial facilities for 10 years. 28 BUILDING TODAY, FOR TOMORROW Corporate Services Team Property Management Team
01 02 03 04
01. Mr Wan Kwong Weng 02. Ms See Hui Hui His responsibilities included execution Joint Company Secretary Joint Company Secretary of development projects in Lend Lease’s portfolio and for various external clients. Mr Wan Kwong Weng is the Joint Ms See Hui Hui is the Joint Company Company Secretary of the Manager. Secretary of the Manager as well as the Mr Tan holds a Bachelor of Science He is also the Group General Counsel Director, Legal of the Sponsor. (Building) degree from the National of the Sponsor, where he takes charge University of Singapore. of all legal, compliance and corporate Prior to joining the Sponsor in 2010, secretarial matters. Ms See was in the Corporate/Mergers & Acquisitions practice group of Wong 04. Mr Foo Say Chiang Prior to joining the Sponsor in 2009, Partnership LLP, one of the leading Head, Group Property Management Mr Wan was the Group General Counsel law firms in Singapore. She started her of the Sponsor - Asia for Infineon for seven years, where career as a litigation lawyer with Tan Kok Mr Foo oversees the daily operations, he was a key member of Infineon’s Quan Partnership. technical services, tenancy and other management team covering the Asia related supporting services like Pacific and Japan regions. He started Ms See holds an LL.B. (Honours) from the procurement for the assets under his career as a litigation lawyer with one National University of Singapore, and is the Sponsor. of the oldest law firms in Singapore, admitted to the Singapore Bar. Wee Swee Teow & Co., and was Mr Foo has more than 26 years of subsequently with the Corporate & 03. Mr Tan Wee Seng estate and asset management Commercial/Private Equity practice Head, Regional Development experience. Prior to joining the Sponsor, group of Baker & McKenzie in Singapore Management of the Sponsor he held the position of Senior Vice and Sydney. President, Property Management Mr Tan Wee Seng oversees the delivery with Marina Properties Pte Ltd, which Mr Wan has an LL.B. (Honours) of various development projects provided property management and (Newcastle upon Tyne), where he was including asset enhancement initiatives maintenance services to Pontiac Land conferred the Wise Speke Prize, as well undertaken within the Mapletree group Group’s properties. In that role, as an LL.M. (Merit) (London). He also across all business units and countries he was responsible for the company’s attended the London Business School (ex Japan). operational and financial performance. Senior Executive Programme. He is Before Marina Properties Pte Ltd, he was called to the Singapore Bar, where he Mr Tan has over 22 years’ experience the General Manager of EM Services Pte was conferred the Justice FA Chua in design, project management Ltd, providing township management Memorial Prize, and is also on the Rolls of and construction across the services to the East Coast and Tanjong Solicitors (England & Wales). industrial, logistics, pharmaceutical, Pagar Town Councils. telecommunication, institutional and He was conferred a Public Service Medal commercial sectors spanning various Under the auspices of the Colombo Plan, (P.B.M.) in 2012 for his contributions to countries in Asia including Singapore, Mr Foo graduated from the University community service. China, Malaysia, as well as the United of Auckland with a Diploma in Valuation States of America, Ireland and Nigeria. (Honours). He also holds a Master of Business Administration degree from Prior to joining the Sponsor in February Heriot-Watt University (United Kingdom) 2012, Mr Tan was Managing Director at and is qualified as a Registered Valuer in Lend Lease Singapore. New Zealand.
ANNUAL REPORT 2014/2015 29 Corporate Governance
The Manager of Mapletree Logistics Trust (“MLT”) has (A) Board Matters responsibility over the strategic direction and management of the assets and liabilities of MLT and its subsidiaries Board’s Conduct of its Affairs (collectively, the “Group”). Principle 1: Effective board The Manager discharges its responsibility for the benefit Our Policy and Practices of MLT’s unitholders (“Unitholders”), in accordance with the The Manager adopts the principle that an effective Board applicable laws and regulations as well as the trust deed of Directors (the “Board”) for the Manager is one constituted constituting MLT (“Trust Deed”). To this end, the Manager sets with the right core competencies and diversity of experience, the strategic direction of the Group and gives recommendations so that the collective wisdom of the Board can give guidance to HSBC Institutional Trust Services (Singapore) Limited, in its and provide insights as well as strategic thinking to Management. capacity as trustee of MLT (the “Trustee”), on the acquisition, divestment or enhancement of assets of the Group. As a REIT The key roles of the Board are to: Manager, the Manager is licensed by the Monetary Authority of Singapore (the “MAS”) and granted a Capital Markets Services • guide the corporate strategy and direction of the Manager; Licence (“CMS Licence”). • ensure that senior management discharges business leadership and demonstrates the highest quality of The Manager’s roles and responsibilities include: management with integrity and enterprise; and • using its best endeavours to carry out and conduct the • oversee the proper conduct of the Manager. Group’s business in a proper and efficient manner and to conduct all transactions with or for the Group on an arm’s The positions of Chairman and Chief Executive Officer (“CEO”) length basis and on normal commercial terms; are held by two separate persons in order to maintain effective • preparing annual budget proposal with forecast on gross oversight. revenue, property expenditure, capital expenditure and providing explanations on major variances against prior The Board comprises eleven Directors, of whom ten are year’s actual results, written commentaries on key issues Non-Executive Directors and six are Independent Directors. and any other relevant assumptions. The purpose of such proposals and analysis is to chart the Group’s business for The following sets out the composition of the Board: the year ahead and to explain the performance of MLT’s • Mr Paul Ma Kah Woh, Chairman and Non-Executive Director properties compared to the prior year; and • Mr Tan Ngiap Joo, Chairman of the Audit and Risk • ensuring compliance with the applicable laws and Committee and Independent Director regulations, including the Securities and Futures Act of • Mr Cheah Kim Teck, Member of the Audit and Risk Singapore (Chapter 289), the Listing Manual, the Code on Committee and Independent Director Collective Investment Schemes, the Singapore Code on • Mr Pok Soy Yoong, Member of the Audit and Risk Takeovers and Mergers, the Trust Deed, the CMS Licence Committee and Independent Director and any tax rulings and all relevant contracts. • Mr Wee Siew Kim, Member of the Audit and Risk Committee The Manager is committed to apply the principles and the and Independent Director spirit of the Code of Corporate Governance (the “Code”). • Mrs Penny Goh, Independent Director The Code was revised by the MAS in May 20121 and save for • Mr Tarun Kataria, Independent Director certain provisions, shall be applicable to annual reports relating • Mr Hiew Yoon Khong, Non-Executive Director to financial years commencing from 1 November 2012. In keeping with our commitment to high standards of corporate governance, • Mr Wong Mun Hoong, Non-Executive Director the Manager has updated its policies as far as practicable for • Mr Chua Tiow Chye, Non-Executive Director FY 2014/15, in order to comply with the revised Code. • Ms Ng Kiat, Executive Director and CEO
The Board of Directors and employees of the Manager are The Board comprises business leaders and distinguished remunerated by the Manager, and not by MLT. professionals with financial, banking, fund management, real estate, legal, investment and accounting experience.
1 The revised Code is applicable to annual reports relating to financial years commencing from 1 November 2012, save for the requirement for independent directors to make up at least half of the board in specified circumstances (Guideline 2.2 of the revised Code), which will only need to be made at the annual general meetings following the end of the financial year commencing on or after 1 May 2016.
30 BUILDING TODAY, FOR TOMORROW The varied backgrounds of the Directors enable Management to benefit from their external, diverse and objective perspectives on issues brought before the Board. Each Director is appointed on the strength of his or her calibre, experience, stature, and potential to give proper guidance to the Manager for the business of the Group. In addition, each Director is given a formal letter of appointment setting out their duties and obligations under the relevant laws and regulations. Their profiles are found on pages 22 to 25 of this Annual Report. The Board is of the view that the present principal directorships included in their profiles will be sufficient in informing Unitholders of their principal commitments.They meet regularly, at least once every quarter, to review the business performance and outlook of the Group, as well as to deliberate on business strategy, including any significant acquisitions, disposals, fundraising and development projects undertaken by the Group.
The meeting attendance of the Board and the Audit and Risk Committee for FY 2014/15 is as follows:
Board Audit and Risk Committee Number of meetings held in FY 2014/15 5 5 Board Members Membership Mr Paul Ma Kah Woh Chairman and Non-Executive Director 5 N.A. (2) (Appointed on 16 May 2005) (Last reappointment on 20 September 2013) Mr Tan Ngiap Joo Chairman of the Audit and Risk Committee 5 5 (Appointed on 15 June 2009) and Independent Director (Last reappointment on 22 September 2014) Mr Cheah Kim Teck Member of Audit and Risk Committee 5 5 (Appointed on 16 May 2005) and Independent Director (Last reappointment on 22 September 2014) Mr Pok Soy Yoong Member of Audit and Risk Committee 5 5 (Appointed on 31 August 2009) and Independent Director (Last reappointment on 28 September 2012) Mr Wee Siew Kim Member of Audit and Risk Committee 5 5 (Appointed on 1 April 2013) and Independent Director (Last reappointment on 20 September 2013) Mrs Penny Goh Independent Director 5 N.A. (2) (Appointed on 31 March 2011) (Last reappointment on 22 September 2014) Mr Tarun Kataria Independent Director 5 N.A. (2) (Appointed on 1 September 2013) (Last reappointment on 20 September 2013) Mr Hiew Yoon Khong Non-Executive Director 5 N.A. (2) (Appointed on 16 May 2005) (Last reappointment on 20 September 2013) Mr Wong Mun Hoong Non-Executive Director 5 4 (1) (Appointed on 15 July 2006) (Last reappointment on 20 September 2013) Mr Chua Tiow Chye Non-Executive Director 5 N.A. (2) (Appointed on 19 January 2005) (Last reappointment on 22 September 2014) Ms Ng Kiat Executive Director and CEO 5 5 (1) (Appointed on 2 October 2012) (Last reappointment on 20 September 2013
1 Attendance was by invitation. 2 N.A. means not applicable.
ANNUAL REPORT 2014/2015 31 Corporate Governance
The Board has approved a set of delegations of authority In view of the above, more than half of the Board comprises which sets out approval limits for investments and divestments, Independent Directors, which is in line with the Code that development, operational and capital expenditures and treasury provides that independent directors should make up at least activities. Approval sub-limits are also provided at various half of the Board where the Chairman of the Board is not an management levels to facilitate operational efficiency as well independent director. as provide a system of checks and balances. Chairman and Chief Executive Officer Board’s approval is required for material transactions, including the following: Principle 3: Clear division of responsibilities • equity fundraising; Our Policy and Practices • acquisition, development and disposal of properties above The Manager adopts the principle of clear separation of the Board prescribed limits; roles and responsibilities between the Chairman of the Board • overall project budget variance and ad hoc development and the CEO of the Manager. The Chairman guides the Board budget above Board prescribed limits; in constructive debates on the strategic direction, management of assets and governance matters. He is non-executive and is • debt fundraising above Board prescribed limits; and free to act independently in the best interests of the Manager • derivative contracts above Board prescribed limits. and Unitholders. Notwithstanding that the Chairman is not an independent director, the Manager is of the view that the Board The Board is updated on any material change to relevant laws, is well served by the Independent Directors and therefore a regulations and accounting standards by way of briefings by lead independent director is not appointed. professionals or by updates issued by Management. The Chairman and the CEO are not related to each other. Board Composition and Balance The CEO is responsible for the running of the Manager’s business operations. She has full executive responsibilities over Principle 2: Strong and independent element on the board the business and operational decisions of the Group. The CEO Our Policy and Practices is also responsible for ensuring compliance with the applicable The Manager adopts the principle that at least one-third of laws and regulations in the day-to-day operations of the Group. its Directors are independent and the majority of its Directors are non-executive. In addition, if the Chairman is not an Board Membership independent director, at least half of the Board will comprise independent directors. This allows the Directors to engage in Principle 4: Formal and transparent process for appointments robust deliberations with Management and provide external, Our Policy and Practices diverse and objective insights into issues brought before the As the Manager is not a listed entity, it does not have a Board. Further, such composition and separation of the roles Nominating Committee. However, the Manager adopts the of the Chairman and the CEO, provide oversight to ensure principle that Board renewal is an ongoing process to ensure that Management discharges its roles with integrity. good governance and to remain relevant to the changing needs of the Manager and the Group’s business. All appointments and Each of the Independent Directors had carried out an resignations of Board members are approved by the Board. assessment on whether there were any relationships or circumstances which may impact their independent status The composition of the Board is determined using the following and had either made a negative declaration or disclose such principles: relationship or circumstances as applicable. • the Chairman of the Board should be a non-executive director of the Manager; Based on a review of the relationships between the Directors and the Group, the Board considers the following Directors to • the Board should comprise directors with a broad range be independent: of commercial experience including expertise in funds management, law, finance, audit, accounting and real • Mr Tan Ngiap Joo; estate; and • Mr Cheah Kim Teck; • at least one-third of the Board should comprise independent • Mr Pok Soy Yoong; directors. • Mr Wee Siew Kim; • Mrs Penny Goh; and The Manager does not, as a matter of policy, limit the maximum number of listed company board representations its Board • Mr Tarun Kataria. members may hold as long as each of the Board members is able to commit his/her time and attention to the affairs of the Group, including attending Board and Board committee
32 BUILDING TODAY, FOR TOMORROW meetings and contributing constructively to the management (B) Remuneration Matters of the Manager and the Group. Procedures for Developing Remuneration Policies As a principle of good corporate governance, all Board Principle 7: Formal and transparent procedure for fixing the members are required to submit themselves for re-nomination remuneration of directors and re-election at regular intervals. The CEO, as a Board member, is also subject to retirement and re-election. Level and Mix of Remuneration Board Performance Principle 8: Appropriate level of remuneration Principle 5: Formal assessment of the effectiveness of the board Disclosure on Remuneration Our Policy and Practices The Manager adopts the principle that the Board’s performance Principle 9: Clear disclosure of remuneration matters is ultimately reflected in the performance of the Manager and Our Policy and Practices the Group. The Manager adopts the principle that remuneration matters should be sufficiently structured and benchmarked with good To assess the performance of the Board and the Audit and Risk market practices to attract qualified talent to grow and manage Committee (“AC”), the Manager conducts confidential board its business. effectiveness surveys on a bi-yearly basis. The last survey was undertaken in April 2014, with the findings evaluated by the The Manager adopts the principle that remuneration for the Board in July 2014. The Board is of the view that it has met its Board and senior management should be viewed in totality. performance objectives. The remuneration structure supports the continuous development of the management bench strength to ensure Each Board member is given sufficient time to bring to the robust talent management and succession planning. Board his or her perspective to enable fruitful discussions in order for balanced and well considered decisions to be made. As the Manager is not a listed entity, it is not presently considered necessary for it to have a remuneration committee. Access to Information However, as a subsidiary of the Sponsor, the Manager takes its reference from the remuneration policies and practices Principle 6: Complete, adequate and timely access to information of the Sponsor in determining the remuneration of the Our Policy and Practices Board and key executives. The Executive Resources and The Manager adopts the principle that the Board shall be Compensation Committee (“Mapletree’s ERCC”) of the Sponsor provided with timely and complete information prior to Board at group level serves the crucial role of helping to ensure that meetings and as well as when the need arises. the Manager is able to recruit and retain the best talent to drive its business forward. Management is required to provide adequate and timely information to the Board, which includes matters requiring The members of Mapletree’s ERCC are: the Board’s decision as well as on-going reports relating • Mr Edmund Cheng Wai Wing (Chairman); to the operational and financial performance of the Group. • Mr Paul Ma Kah Woh (Member); and Management is also required to furnish any additional • Ms Chan Wai Ching, Senior Managing Director, Temasek information requested by the Board, in a timely manner in International Pte. Ltd. (Co-opted Member). order for the Board to make informed decisions. All the members of Mapletree’s ERCC are independent The Board has separate and independent access to of Management. Mapletree’s ERCC oversees executive Management and the Company Secretary. compensation and development of the management bench strength, so as to build and augment a capable and dedicated The Company Secretary attends to the administration of management team, and gives guidance on progressive policies corporate secretarial matters and advises the Board on which can attract, motivate and retain a pool of talented governance matters. The Company Secretary also attends all executives for the present and future growth of the Manager. Board and Board committee meetings and provides assistance to the Chairman in ensuring adherence to Board procedures.
The Board takes independent professional advice as and when necessary to enable it or the Independent Directors to discharge their responsibilities effectively. The AC meets the external and internal auditors separately at least once a year, without the presence of Management. ANNUAL REPORT 2014/2015 33 Corporate Governance
Specifically, Mapletree’s ERCC, with the assistance of The Chairman, the Non-Executive Directors and the Independent compensation consultants where necessary: Directors have no service contracts with the Manager. Save for • establishes compensation policies for key executives; Mr Hiew Yoon Khong, Mr Wong Mun Hoong, Mr Chua Tiow Chye, and Ms Ng Kiat, all the Directors receive a basic fee and, where • approves salary reviews, bonuses and incentives for key applicable, an additional fee for serving on the AC. executives; • approves key appointments and reviews succession plans Mr Hiew Yoon Khong, Mr Wong Mun Hoong and Mr Chua Tiow for key positions; and Chye, respectively the Group Chief Executive Officer, the Group • oversees the development of key executives and younger Chief Financial Officer and the Group Chief Investment Officer talented executives. and Regional Chief Executive Officer, North Asia & New Markets of the Sponsor, also do not receive director’s fees for serving as Mapletree’s ERCC conducts an annual succession planning Non-Executive Directors of the Manager. review of the CEO and selected key positions in the Manager. In this regard, potential internal and external candidates for The CEO, as an Executive Director, does not receive director’s succession are reviewed for immediate, medium term and fees. She is a lead member of Management. Her compensation longer term needs. A total of five meetings were held by comprises salary, allowances, bonuses and share appreciation Mapletree’s ERCC in FY 2014/15. awards from the Sponsor. The latter is conditional upon her meeting certain performance targets. The CEO is not present The remuneration of the Board and the employees of the during the discussions relating to her own compensation Manager is paid by the Manager from the fees it receives from and terms and conditions of service, and the review of her MLT, and not by MLT. Since MLT does not bear the remuneration performance. However, the Board’s views of the CEO’s of the Manager’s Board and employees, the Manager does performance are shared with her. not consider it necessary to include information (other than as set out below) on the remuneration of its Directors and its Directors’ fees are subject to the approval of the Manager’s key executives. shareholder and the directors’ fees paid to the Board for FY 2014/15 are as follows:
Board Members Membership FY 2014/15 Mr Paul Ma Kah Woh Chairman and Non-Executive Director S$115,000 Mr Tan Ngiap Joo Chairman of the Audit and Risk Committee S$95,000 and Independent Director Mr Cheah Kim Teck Member of Audit and Risk Committee S$82,500 and Independent Director Mr Pok Soy Yoong Member of Audit and Risk Committee S$82,500 and Independent Director Mr Wee Siew Kim Member of Audit and Risk Committee S$82,500 and Independent Director Mrs Penny Goh Independent Director S$55,000 Mr Tarun Kataria Independent Director S$55,000 Mr Hiew Yoon Khong Non-Executive Director Nil Mr Wong Mun Hoong Non-Executive Director Nil Mr Chua Tiow Chye Non-Executive Director Nil Ms Ng Kiat Executive Director and CEO Nil
34 BUILDING TODAY, FOR TOMORROW (C) Accountability and Audit divestments, development, operational and capital expenditures and treasury activities. Approval sub-limits are also provided at Accountability various management levels to facilitate operational efficiency as well as provide a system of checks and balances. Principle 10: Balanced and understandable assessment of the company’s performance, position and prospects Board’s approval is required for material transactions, including Our Policy and Practices the following: The Manager adopts the principle that to build confidence • equity fundraising; among stakeholders, there is a need to deliver sustainable value. • acquisition, development and disposal of properties above Board prescribed limits; The Manager complies with statutory and regulatory requirements as well as adopts best practices in the Group’s • overall project budget variance and ad hoc development business processes. The Board is also apprised of the budget above Board prescribed limits; performance of the Group and the business and market • debt fundraising above Board prescribed limits; and outlook on a regular basis to enable the Board to make • derivative contracts above Board prescribed limits. a balanced and informed assessment of the Group’s performance, position and prospects. The Group’s procedures and practices are regularly reviewed and revised where necessary to enhance controls Internal Controls and efficiency. The Group has implemented a Control Self Assessment programme to promote accountability, control Principle 11: Sound system of internal controls and risk and risk ownership, in order to cultivate a stronger sense of management risk awareness and compliance with internal controls within Our Policy and Practices the Group. The Manager adopts the principle that a sound system of internal controls and risk management is necessary for the The Internal Audit function which is outsourced to the Group’s business. Sponsor verifies compliance with the control procedures and policies established within the internal control and risk The Manager, working with the Sponsor, has established management systems. internal control and risk management systems that address key operational, financial, compliance and information Whistle-blowing Policy technology risks relevant to the Group’s business and operating To reinforce a culture of good business ethics and governance, environment. These systems provide reasonable but not the Manager has a Whistle-blowing Policy to encourage the absolute assurance on the achievement of their intended reporting, in good faith, of any suspected improper conduct, internal control and risk management objectives. including possible financial irregularities, while protecting the whistleblowers from reprisals. Any such incidents reported The key elements of the Group’s internal control and risk relating to the Group or the Manager shall be notified to the management systems are as follows: AC Chairman for investigation and to the AC for deliberation on the findings. Operating Structure The Manager has a well-defined operating structure with Risk Management clear lines of responsibility and delegated authority, as well as Risk management is an integral part of business management reporting mechanisms to senior management and the Board. by the Manager. In order to safeguard and create value for This structure includes certain functions, such as Human Unitholders, the Manager proactively manages risks and Resources, Information Systems & Technology, Internal Audit, incorporates the risk management process into the Manager’s Legal and Risk Management, which are outsourced to the planning and decision making process. Sponsor. The Manager also conducts an annual review of such outsourced functions to ensure required performance The Risk Management function which is outsourced to the standards are met. Sponsor’s Risk Management Department oversees the Enterprise Risk Management (“ERM”) framework, which enables Policies, Procedures and Practices the Manager to assess, mitigate and monitor key risks. Controls are detailed in formal procedures and manuals. The Risk Management function reports to the AC and the For example, the Board has approved a set of delegations Board independently, on a quarterly basis, on key risk of authority which sets out approval limits for investments and exposures, portfolio risk profile and activities in respect of significant risk matters.
ANNUAL REPORT 2014/2015 35 Corporate Governance
The risk management system established by the Manager, The key financial risks which the Group is exposed to include which encompass the ERM framework and the risk management interest rate risk, liquidity risk, currency risk and credit risk. process, is dynamic and evolves with the business. The Manager Where appropriate, the Manager hedges the Group against has identified key risks, assessed their likelihood and impact interest and/or currency rate fluctuations. In addition, on MLT’s business, and established corresponding mitigating the Manager proactively manages liquidity risk by ensuring controls. The information is maintained in a risk register that that sufficient working capital lines and loan facilities are is reviewed and updated regularly. The Risk Management maintained. The Manager’s capital management strategy can function works closely with the Manager to review and enhance be found on pages 82 to 83 of this Annual Report. The Manager the risk management system to be in line with market practices also has in place credit control procedures for managing tenant and regulatory requirements. credit risk and monitoring of debt collection.
The Manager’s policies and procedures relating to risk Internal Audit management can be found on pages 40 to 42 of this Annual The Internal Audit function (“IA”) which is outsourced to the Report. Sponsor’s Internal Audit Department prepares a risk-based audit plan annually to review the adequacy and effectiveness Information Technology (“IT”) Controls of the Group’s system of internal controls and this audit plan is As part of the Group’s risk management process, IT controls approved by the AC before execution. The IA is also involved have been put in place and are periodically reviewed to ensure during the year in conducting ad-hoc audits and reviews that that IT risks are identified and mitigated. In addition, as part of may be requested by the AC or Management on specific areas the Manager’s business continuity plan, IT disaster recovery of concern. In doing so, the IA obtains reasonable assurance planning and tests are conducted to ensure that critical IT that business objectives for the process under review are being systems will remain functional in a crisis situation. achieved and key control mechanisms are in place.
Financial Reporting Upon completion of each review, a formal report detailing The Board is updated on a quarterly basis on the Group’s the audit findings and the appropriate recommendations is financial performance. The Manager reports on significant issued to the AC. The IA monitors and reports on the timely variances in financial performance, in comparison with budgets implementation of the action plans to Management and the and financial performance of corresponding periods in the AC on a quarterly basis. preceding year and provides an updated full year forecast. In addition, the Board is provided with quarterly updates on The external auditors provide an independent perspective key operational activities. on certain aspects of the internal financial controls system arising from their work and report their findings to the AC on A management representation letter is provided in connection an annual basis. The external auditors are also kept abreast with the preparation of the Group’s financial statements of the Manager’s Control Self Assessment programme. presented to the AC and Board quarterly. The representation letter is supported by declarations made individually by the Interested Person Transactions various Heads of Department. Compliance checklists on All interested person transactions are undertaken on normal announcement of financial statements, which are required for commercial terms and the AC regularly reviews all interested submission to the SGX-ST, are reviewed and confirmed by the party transactions to ensure compliance with the internal Chief Financial Officer (“CFO”). control system as well as with relevant provisions of the Listing Manual and Appendix 6 of the Code on Collective Investment The Group’s financial results are reported to Unitholders Schemes issued by the MAS (the “Property Funds Appendix”). quarterly in accordance with the requirements of the SGX-ST. In addition, the Trustee has the right to review such transactions These results announcements provide analyses of significant to ascertain that the Property Funds Appendix has been variances in financial performance and commentary on the complied with. industry’s competitive conditions in which the Group operates and any known factors or events that may affect the Group in The following procedures are also undertaken: the next reporting period and the next 12 months. • transactions (either individually or as part of a series or if aggregated with other transactions involving the same Detailed disclosure and analysis of the full year financial interested party during the same financial year) equal to or performance of the Group are in the Annual Report. exceeding S$100,000 in value but below 3.0% of the value of the Group’s net tangible assets will be subject to review Financial Management by the AC at regular intervals; Management reviews the performance of the MLT portfolio properties on a monthly basis in order to maintain financial and operational discipline.
36 BUILDING TODAY, FOR TOMORROW • transactions (either individually or as part of a series or Each Director is required to give notice to the Manager of his if aggregated with other transactions involving the same or her acquisition of MLT units or of changes in the number of interested party during the same financial year) equal to MLT units which he or she holds or in which he or she has an or exceeding 3.0% but below 5.0% of the value of the interest, within two business days of such acquisition or change Group’s net tangible assets will be subject to the review of interest. In addition, employees of the Manager and the and prior approval of the AC. Such approval shall only be Sponsor are to give pre-trading notifications before any dealing given if the transactions are on normal commercial terms in MLT units. and are consistent with similar types of transactions made by the Trustee with third parties which are unrelated to the Role of the Board and AC Manager; and The Board recognises the importance of maintaining a sound • transactions (either individually or as part of a series or internal control and risk management system to safeguard if aggregated with other transactions involving the same the assets of the Group and Unitholders’ interests, through a interested party during the same financial year) equal to framework that enables risks to be assessed and managed. or exceeding 5.0% of the value of the Group’s net tangible assets will be reviewed and approved prior to such The AC provides oversight of the financial reporting risks, transactions being entered into, on the basis described in accounting policies and the adequacy and effectiveness of the the preceding paragraph, by the AC which may, as it deems Group’s internal control and risk management system as well fit, request advice on the transaction from independent as its compliance system. sources or advisers, including the obtaining of valuations from independent professional valuers. Further, under the The Board and the AC also took into account the results from Listing Manual and the Property Funds Appendix, the Control Self Assessment programme, which requires the such transactions would have to be approved by the respective departments of the Manager to review and report on Unitholders at a meeting of the Unitholders. compliance with their key control processes.
The interested person transactions undertaken by the Group It should be recognised that all internal control and risk in FY 2014/15 can be found on page 171 of this Annual Report. management systems contain inherent limitations and, For the purpose of the disclosure, the full contract sum was accordingly, the internal control and risk management systems used where an interested person transaction had a fixed term can only provide reasonable but not absolute assurance. and contract value, while the annual amount incurred and/or accrued was used where an interested person transaction had The Board has received assurance from the CEO and the an indefinite term or where the contract sum was not specified. CFO (a) that the Group’s financial records have been properly maintained and the financial statements give a true and Dealing in MLT units fair view of the Group’s operations and finances; and (b) on The Manager adopts the best practices on dealings in securities the effectiveness of the Group’s internal control and risk set out in the Listing Manual. All Directors are required to management systems. disclose their interests in MLT and are also provided with disclosures of interests by other Directors as well as reminders Opinion on Internal Controls on trading bans. Based on the internal control and risk management systems established and maintained by the Manager and the Sponsor, On trading in MLT units, the Directors and employees of the work performed by the Sponsor’s Internal Audit and Risk Manager are reminded not to deal in MLT units on short term Management departments as well as by the external auditors, considerations and are prohibited from dealing in MLT units: reviews performed by Management and the above assurance from the CEO and the CFO, the Board, with the concurrence • in the period commencing one month before the public of the AC, is of the opinion that the Group’s internal control announcement of the Group’s annual results; and risk management systems, addressing key financial, • in the period commencing two weeks before the public operational, compliance, information technology and risk announcement of the Group’s quarterly and semi-annual management objectives and which the Group considers results; and relevant and material to its operations, were adequate and • at any time whilst in possession of price-sensitive effective to meet the needs of the Group in its business information. environment as at 31 March 2015.
ANNUAL REPORT 2014/2015 37 Corporate Governance
Audit and Risk Committee • reviews and, if required, investigates the matters reported via the whistle-blowing mechanism, by which staff may, in Principle 12: Written terms of reference confidence, raise concerns about suspected improprieties including financial irregularities. Our Policy and Practices The Board is supported by the AC which provides additional The objective of the whistle-blowing mechanism is to ensure oversight of financial, risks and audit matters, so as to maximise that arrangements are in place for independent investigations the effectiveness of the Board and foster active participation of any reported matters and reviews of such investigations, and contribution. to ensure appropriate follow-up actions are taken.
The Manager adopts the principle that the AC shall have at least A total of five AC meetings were held in FY 2014/15. three members, all of whom must be non-executive and the majority of whom must be independent. The Manager, on behalf of the Group, confirms that the Group has complied with Rules 712 and 715 of the Listing Manual in The AC consists of four members. They are: relation to the Group’s auditing firm. • Mr Tan Ngiap Joo, Chairman; • Mr Cheah Kim Teck, Member; Internal Audit • Mr Pok Soy Yoong, Member; and Principle 13: Independent internal audit function • Mr Wee Siew Kim, Member. Our Policy and Practices The AC has a set of Terms of Reference dealing with its scope The Manager adopts the principle that a robust system of and authority, which include: internal audits is required to safeguard Unitholders’ interests, • review of annual internal and external audit plans; the Group’s assets, and to manage risks. Apart from the AC, • examination of Interested Person Transactions; other Board committees may be set up from time to time to address specific issues or risks. • review of audit findings of internal and external auditors as well as management responses to them; The IA of the Group is outsourced to the Sponsor’s Internal • evaluation of the nature and extent of non-audit services Audit Department and the IA reports directly to the Chairman of performed by external auditors. In this regard, for the the AC of both the Manager and the Sponsor. financial year ended 31 March 2015, MLT paid S$570,000 to the network of member firms of PricewaterhouseCoopers The role of the IA is to conduct internal audit work in consultation International Limited (“PwC”), of which S$528,000 was for with, but independently of, Management. Its annual audit audit services and S$42,000 was for non-audit services plan and audit findings are submitted to the AC. The AC also relating to tax compliance and advisory services for the meets with the IA at least once a year without the presence Group. The AC has undertaken a review of all non-audit of Management. services provided by PwC and is of the opinion that such non-audit services would not affect the independence The Sponsor’s Internal Audit Department is a corporate of PwC; member of the Singapore branch of the Institute of Internal • review of the quality and reliability of information prepared Auditors Inc. (“IIA”), which has its headquarters in the USA. for inclusion in financial reports; The IA subscribes to, and is in conformance with, the Standards for the Professional Practice of Internal Auditing (“Standards”) • recommendation of the appointment and re-appointment developed by the IIA and has incorporated these standards of external auditors; and into its audit practices. • approval of the remuneration and terms of engagement of external auditors. The Standards set by the IIA cover requirements on: • independence and objectivity; In addition, the AC also: • proficiency and due professional care; • meets with the external and internal auditors, without the presence of Management, at least once a year to review • managing the internal audit activity; and discuss the financial reporting process, system of internal • engagement planning; controls (including financial, operational, compliance and • performing engagement; and information technology controls), significant comments and • communicating results. recommendations; and
38 BUILDING TODAY, FOR TOMORROW for each annual general meeting is also published via SGXNET. The IA staff involved in IT audits are Certified Information An annual general meeting is held once a year to provide System Auditors and members of the Information System a platform for Unitholders to interact with the Board and Audit and Control Association (“ISACA”) in the USA. The ISACA Management, in particular the Chairman of the Board, Information System Auditing Standards provide guidance on the Chairman of the AC, the CEO and the CFO. The external the standards and procedures to be applied in IT audits. auditors are also present to address Unitholders’ queries about the audit and the financial statements of the Group. To ensure that the internal audits are performed by competent professionals, the Sponsor’s Internal Audit Department recruits Similarly, where a general meeting is convened, all Unitholders and employs qualified staff. In order that their technical are entitled to receive a circular enclosing a proxy form with knowledge remains current and relevant, the IA identifies and instructions on the appointment of proxies. Prior to voting at provides training and development opportunities to the staff. an annual general meeting or any other general meeting, the voting procedures will be made known to the Unitholders In compliance with the IIA Standards, an external quality to facilitate them in exercising their votes. assessment review (“QAR”) of the Sponsor’s Internal Audit Department is conducted at least once every five years by a The Chairman of the Board will usually demand for a poll to be qualified, independent reviewer. The last external QAR of the taken for resolutions proposed at an annual general meeting IA was completed in January 2013 and the QAR concluded that and any other general meeting and thereafter voting will be the Sponsor’s Internal Audit Department was in conformance conducted by electronic polling. The Manager will announce with the IIA Standards. the results of the votes cast for and against each resolution and the respective percentages and prepare minutes of (D) Shareholder Rights and Responsibilities such meetings. Shareholder Rights The Manager has an Investor Relations Department which works with the Legal and Corporate Secretariat Department Principle 14: Fair and equitable treatment of all shareholders of the Sponsor to ensure the Group’s compliance with the legal and regulatory requirements applicable to listed REITs, Communication with Shareholders as well as to incorporate best practices in its investor relations programme. Principle 15: Regular, effective and fair communication with shareholders The Manager regularly communicates major developments in the Group’s businesses and operations to Unitholders, Conduct of Shareholder Meetings analysts and the media through the issuance of announcements and press releases. In addition, all announcements and press Principle 16: Greater shareholder participation at annual releases are first made on SGXNET and subsequently on general meetings MLT’s website. Our Policy and Practices Investors can subscribe to email alerts of all announcements The Manager adopts the principle that all Unitholders should be and press releases issued by MLT through its website. treated fairly and equitably and their ownership rights arising “Live” webcast of analyst briefings are conducted, from their unitholdings should be recognised. where practicable. To this end, the Manager issues via SGXNET announcements The Manager also communicates with MLT’s investors on a and press releases on the Group’s latest corporate developments regular basis through group/individual meetings with investors, on an immediate basis where required under the Listing investor conferences and non-deal roadshows. The Manager’s Manual. Where immediate disclosure is not practicable, CEO and CFO are present at briefings and communication the relevant announcement will be made as soon as possible sessions to answer questions. to ensure that all stakeholders and the public have equal access to the information. MLT’s distribution policy is to distribute at least 90% of its taxable income, comprising substantially its income from the All Unitholders are entitled to receive the annual report in digital letting of its properties and related property service income format packaged in a compact disc with the option of receiving after deduction of allowable expenses, and such distributions a printed version. The annual report encloses a notice of annual are typically paid on a quarterly basis. For FY 2014/15, MLT has general meeting and a proxy form with instructions on the made four distributions to Unitholders. appointment of proxies. The notice of annual general meeting
ANNUAL REPORT 2014/2015 39 Risk Management
Risk Management is integral to the Manager’s business strategy of delivering sustainable and stable returns. In order to safeguard and create value for Unitholders, the Manager proactively manages risks and embeds the risk management process into the planning and decision making processes.
Risk Appetite, Tolerance Attitude and Philosophy Risk Strategy
Risk Reporting Structures, Roles and Responsibilities Risk Governance
1. Risk Identification
5. Risk Reporting 2. Risk Assessment Risk Risk Analysis Risk Management Process Management 4. Risk Monitoring Process Risk Evaluation
3. Risk Treatment
Information Key Risks Strategic External Operational Financial Compliance Technology
Internal Key Risk Delegation Standard Control Self- Risk Assurance of Authority Operating Trainings Whistleblowing Audit Indicators Procedures Assessment
Strong Oversight and Governance The Manager’s ERM framework is dynamic and evolves with the business. The Sponsor’s RM department works closely The Board is responsible for determining the overall risk with the Manager to review and enhance the risk management strategy and risk governance, and ensuring that the Manager system in accordance with market practices and regulatory implements sound risk management and internal control requirements. A control self-assessment (“CSA”) framework practices. The Board also approves the risk appetite and further reinforces risk awareness by fostering accountability, tolerance statements, which set out the nature and extent of control and risk ownership. risks to take to achieve the Manager’s business objectives. The Board is supported by the AC, which comprises independent Robust Measurement and Analysis directors whose collective experience and knowledge serve to guide and challenge management. The AC has direct access to The Manager’s risk measurement framework is based on the Sponsor’s Risk Management (“RM”) department. The AC is Value-at-Risk (“VaR”), a methodology which measures the updated on a quarterly basis by RM on MLT’s portfolio risks. volatilities of individual market and property risk drivers such as rental rates, occupancy rates, capital values, interest rates and At MLT, risk management has top-down oversight and foreign exchange rates. It takes into consideration changes bottom-up involvement from all employees. This ensures a in market environment and asset cash flows as they occur. risk approach that is aligned with its business objectives and To further complement the VaR methodology, other risks such strategies, and integrated with operational processes for as refinancing, tenant credit and development risks are also effectiveness and accountability. assessed, monitored and measured as part of the framework where feasible.
40 BUILDING TODAY, FOR TOMORROW With the VaR methodology, risks are measured consistently External Risks across the portfolio, enabling the Manager to quantify the To mitigate country risks such as economic uncertainties benefits that arise from diversification across the portfolio and or political turbulence in countries where it operates in, to assess risk by country or risk type. Recognising the limitations the Manager conducts rigorous country and market research, of any statistically-based system that relies on historical data, and monitors economic and political developments closely. MLT’s portfolio is further subject to stress testing and scenario analysis to ensure that businesses remain resilient in the event Operational Risks of unexpected market shocks. Comprehensive operating, reporting and monitoring guidelines enable the Manager to manage day-to-day activities and Risk Identification and Assessment mitigate operational risks. To ensure relevance, the Manager regularly reviews its Standard Operating Procedures (“SOPs”) The Manager also identifies key risks, assesses their likelihood and benchmarks them against industry practices. Compliance and impact on business, and establishes corresponding with SOPs is monitored by the CSA framework and reinforced mitigating controls. The information is maintained in a risk through training of employees and regular reviews by the register that is reviewed and updated regularly. The key risks Sponsor’s Internal Audit Department. The Sponsor’s Internal identified include but are not limited to: Audit Department plans its internal audit work in consultation with management, but works independently by submitting its Strategic Risks plans to the AC for approval at the beginning of each year. MLT’s portfolio is subject to real estate market risks such as rental rate and occupancy volatilities in the countries it operates Loss of key management personnel and identified talents can in and specific factors including competition, supply, demand cause disruptions to the Manager’s business operations and and local regulations. Such risks are quantified, aggregated hinder the achievement of its business objectives. The Manager and monitored for existing assets and prospective acquisitions. has put in place succession planning, talent management and Significant risk profile changes or emerging trends are reported competitive compensation and benefits plans to reward and for assessment and/or action. retain performing personnel.
The risks arising from investment activities are managed To deal with catastrophic events such as terrorism and through a rigorous and disciplined investment approach, natural disasters, the Manager has put in place and tested a particularly in the area of asset evaluation and pricing. comprehensive Business Continuity Plan to enable it to resume All acquisitions have to be yield-accretive at least in the operations with minimal disruption and loss. MLT’s properties medium term and meet MLT’s internal return requirement. are insured in accordance with industry norms in their Sensitivity analysis is also performed for each acquisition on all respective jurisdictions and benchmarked against those key project variables to test the robustness of the assumptions in Singapore. used. Significant acquisitions are further subject to independent review by the Sponsor’s RM department and the findings Credit risks are mitigated from the outset by conducting thorough are included in the Investment Proposal submitted to the tenant credit assessment during the investment stage prior to Manager’s Board for approval. All investment proposals are acquisition. For new and sizeable leases, credit assessments subject to rigorous scrutiny by the Board (or delegated to the of prospective tenants are undertaken prior to signing of Management Committee). lease agreements. On an ongoing basis, tenant credit is closely monitored by the Manager’s asset management team On receiving the Board’s or Management Committee’s and arrears are managed by the Manager’s Credit Control approval, the investment proposals are then submitted to the Committee which meets fortnightly to review debtor balances. Trustee, who is the final approving authority for all investment To further mitigate risks, security deposits in the form of cash decisions. or banker’s guarantees are collected from prospective tenants prior to commencement of leases. The Trustee also monitors the compliance of the Manager’s executed investment transactions with the restrictions and Financial Risks requirements of the Listing Manual of the Singapore Exchange Financial market risks and capital structure are closely Securities Trading Limited, MAS’s Property Funds Appendix and monitored and actively managed by the Manager, and reported the provisions in the Trust Deed. to the Board on a quarterly basis. At the portfolio level, the risk impact of currency and interest rate volatilities on value New development projects usually take a few years to complete, is quantified, monitored and reported quarterly using the VaR depending on the project size and complexity. To mitigate methodology. Refinancing risk is also quantified, taking into the risk of development delays, cost overruns and lower than account the concentration of the loan maturity profile and credit expected quality, the Manager has put in place stringent pre- spread volatility. qualifications of consultants and contractors, and regular reviews of projects’ progress.
ANNUAL REPORT 2014/2015 41 Risk Management
MLT hedges its portfolio exposure to interest rate volatility The Manager identifies applicable laws and regulatory arising from its floating rate borrowings by way of interest obligations and embeds compliance in day-to-day business rate swaps. processes.
Where feasible, after taking into account cost, tax and other Information Technology (“IT”) Risks relevant considerations, the Manager will borrow in the same Any system downtime or breach in security may have an currency as the underlying assets to provide some natural adverse impact on the integrity, accuracy and completeness of hedge, or hedge through cross currency swaps for its overseas data and information. The Manager has in place comprehensive investments. To mitigate foreign exchange risks and to provide policies and procedures governing information availability, investors with a degree of income stability, a large proportion of control and governance, and data security. In addition, an IT rental income received from overseas assets is hedged using disaster recovery plan is in place and tested to ensure business forward contracts and secured in Singapore Dollar terms. recovery objectives are met.
The Manager also actively monitors MLT’s cash flow position Rigorous Monitoring and Control and requirements to ensure significant liquid reserves to fund operations and meet short-term obligations (see Corporate The Manager has developed internal key risk indicators Liquidity and Financial Resources section on pages 82 to 83). that serve as an early-warning system to management by In addition, the Manager monitors and mitigates bank highlighting risks that have escalated beyond established concentration risks by having a well-diversified funding base. tolerance levels. Management has also established required The limit on gearing is observed and monitored to ensure actions to be taken when risk thresholds are breached. compliance with Appendix 6 of the Code on Collective Investment Schemes issued by the MAS. Every quarter, the Sponsor’s RM department presents to the Board and AC a comprehensive report, highlighting key Compliance Risks risk exposures, portfolio risk profile, results of stress testing MLT is subject to applicable laws and regulations of the various scenarios and status of key risk indicators. The Board and jurisdictions in which it operates. Non-compliance may result AC are also kept abreast of any material changes to MLT’s in litigation, penalties, fines or revocation of business licenses. risk profiles and activities.
42 BUILDING TODAY, FOR TOMORROW Portfolio Analysis & Review
As of 31 March 2015, MLT’s portfolio comprises 117 logistics A Growing and Diversifi ed Tenant Base properties across seven geographic markets in Asia – Singapore, Japan, Hong Kong, South Korea, China, Malaysia and Vietnam. Apart from geographic diversity, MLT’s portfolio continues to Strategically located in established logistics clusters of the be well spread across a broad base of tenants from diverse respective markets, these properties are easily accessible industries. Through proactive leasing eff orts, over 30 quality by major highways and in close proximity to seaports tenants were added to MLT’s portfolio during the year, bringing and/or airports. the total to 410 tenants as at year end. Collectively, the top 10 tenants accounted for approximately 23% of gross revenue, MLT’s portfolio remained stable and resilient in FY14/15, with no single tenant accounting for more than 5% of gross revenue. underpinned by its geographic and tenant diversity, a good These tenants and the clients they service are engaged in a mix of multi-tenanted buildings (“MTBs”) and single-user assets broad spectrum of economic activities, ranging from food and (“SUAs”), and a well staggered lease expiry profi le. beverage, to materials, construction and engineering. The diversity in tenant base and trade sectors reduces reliance on a single tenant or industry and contributes to revenue stability. Geographically Diversifi ed Portfolio During the year, MLT continued to strengthen its regional Top 10 Customers (By Gross Revenue) presence in its target growth markets with the acquisition of (As at 31 March 2015) six properties – two in China, two in South Korea, and one each in Malaysia and Singapore. Consistent with its portfolio rebalancing strategy, the combined contribution from China, Malaysia and South Korea to MLT’s portfolio net lettable area Menlo Group 4.2% (“NLA”) is now increased to 31%, from 26% two years ago.
Nippon Express 3.7% Geographic Breakdown (By NLA) (As at 31 March 2015) KPPC Co., Ltd. 2.7%
Nippon Access 2.5% Group
Equinix 2.1%
3.2m sqm Logicom 1.7%
Nichirei Group 1.6%
SBS Holdings 1.5%
Taeun Logistics 1.5% Co., Ltd. Singapore 48% Japan 14% Natural Cool Hong Kong 6% 1.4% South Korea 10% Investmets Pte Ltd China 13% Malaysia 8% Vietnam 1% Total: 22.9%
ANNUAL REPORT 2014/2015 43 Portfolio Analysis & Review
Major End-User Industry (By Gross Revenue) (As at 31 March 2015)
F&B 18% Materials, Construction & Engineering 11% Consumer Durables 8% Chemicals 3% Fashion, Apparel & Cosmetics 8% Commercial Printing & Packaging 1% Automobiles 6% Documents Storage 2% Furniture & Furnishings 3% Telecommunication 2% Healthcare 3% Banking & Finance 3% Retail 2% Energy & Marine 4% Electronics & IT 17% Others 9%
Good Mix of SUAs and MTBs other hand, MTBs enable MLT to achieve tenant diversifi cation as well as provide opportunities to capture potential positive MLT strives to achieve a good mix of MTBs and SUAs in the rental reversions due to their shorter lease periods. As at portfolio through active asset and lease management. 31 March 2015, gross revenue from MTBs accounted for 51% of SUAs provide portfolio stability and organic growth with their MLT’s revenue base, while SUAs contributed the balance 49%. longer lease periods and built-in rental escalations. On the
SUA vs MTB Breakdown (By Gross Revenue) (As at 31 March 2015)
SUA Revenue Breakdown MTB Revenue Breakdown
Singapore 36% Multi-Tenanted Buildings 51% Singapore 55% Japan 38% Single-User Assets 49% Hong Kong 22% Hong Kong 5% South Korea 6% South Korea 12% China 15% Malaysia 9% Malaysia 1% Vietnam 1%
44 BUILDING TODAY, FOR TOMORROW Well Staggered Lease Expiry Profile 14% for MTBs. The Manager has already commenced renewal negotiations for these leases and expects several SUAs in MLT continues to maintain a well staggered lease expiry Singapore to be converted to MTBs. profile. As at 31 March 2015, the weighted average lease expiry (“WALE”) (by NLA) was about 4.3 years with more than 43% Freehold land accounted for approximately 27% of the portfolio, of leases expiring after FY17/18. The WALE (by revenue) was with the remaining 73% on leasehold terms. As at 31 March approximately 3.4 years. 2015, the WALE of the underlying leasehold land (excluding freehold land) was approximately 43 years. In FY15/16, about 24% of MLT’s leases (by NLA) will be due for expiry, of which 10% are leases for SUAs and the remainder
Lease Expiry Profile - SUA vs MTB Breakdown (By NLA) (As at 31 March 2015)
SUA MTB
19.4%
13.8% 9.5%
% of Portfolio NLA % of Portfolio 13.9% 11.6% 10.2% 6.3% 3.8% 1.4% 4.9% 0.7% 4.5% Expiring in FY15/16 Expiring in FY16/17 Expiring in FY17/18 Expiring in FY18/19 Expiring in FY19/20 Expiring after FY19/20 24.0% 21.1% 11.2% 4.5% 5.9% 33.3%
Land Lease Expiry Profile (By NLA) (As at 31 March 2015)
* Excluding freehold land
27.0%
21.9% 18.9%
% of Portfolio NLA % of Portfolio 14.9%
8.2%
4.8% 4.3% 0-20 yrs 21-30 yrs 31-40 yrs 41-50 yrs 51-60 yrs > 60 yrs* Freehold
ANNUAL REPORT 2014/2015 45 Portfolio Analysis & Review
Lease Expiry Profile - Geographic Breakdown (By NLA) (As at 31 March 2015)
Singapore Japan Hong Kong South Korea China Malaysia Vietnam 21.7% 9.5% 8.7% % of Portfolio NLA % of Portfolio 8.0% 6.5% 4.5% 3.9% 3.5% 3.2% 3.1% 2.5% 2.3% 2.3% 2.3% 2.3% 2.2% 2.1% 1.7% 1.6% 1.5% 1.2% 1.2% 1.1% 0.6% 0.4% 0.4% 0.3% 0.3% 0.3% 0.3% 0.2% 0.2% 0.1%
Expiring in FY15/16 Expiring in FY16/17 Expiring in FY17/18 Expiring in FY18/19 Expiring in FY19/20 Expiring after FY19/20 24.0% 21.1% 11.2% 4.5% 5.9% 33.3%
Lease Expiry Profile - Geographic Breakdown (By Gross Revenue) (As at 31 March 2015)
Singapore Japan Hong Kong South Korea China Malaysia Vietnam 13.7% 13.0% 11.7% 8.3% % of Portfolio Revenue % of Portfolio 5.3% 4.3% 3.9% 3.7% 3.6% 3.4% 3.2% 2.8% 2.7% 2.5% 2.4% 2.1% 1.8% 1.7% 1.5% 1.2% 1.2% 1.0% 1.0% 0.9% 0.7% 0.6% 0.5% 0.4% 0.2% 0.2% 0.2% 0.2% 0.1% Expiring in FY15/16 Expiring in FY16/17 Expiring in FY17/18 Expiring in FY18/19 Expiring in FY19/20 Expiring after FY19/20 25.7% 26.9% 12.9% 4.5% 7.1% 22.9%
46 BUILDING TODAY, FOR TOMORROW Positive Rental Reversions, Healthy Occupancy or higher occupancies in the other six markets. Singapore registered an occupancy rate of 94.4% as at 31 March 2015, During the year, leases for approximately 444,600 sqm of space above the national average of 90.0%1 for warehouse space, while due for expiry were renewed/replaced at an average rental the other six markets registered occupancies of 97.9% to 100%. reversion of 8%. The positive rental reversion was contributed mainly by leases in Hong Kong and Singapore. In the coming year, the expected conversion of several SUAs in Singapore is likely to exert pressure on occupancy during Portfolio occupancy stood at 96.7% as at 31 March 2015, the transition period. The Manager will continue to conduct compared to 98.3% a year ago. The decline was a result of intensive asset and lease management programmes to lower occupancy in Singapore arising from downtime due to minimise downtime and optimise occupancy. the conversion of five SUAs to MTBs, partially offset by similar
Portfolio Occupancy (As at 31 March 2015)
100.0% 99.8% 100.0% 98.6% 97.9% 98.3% 96.7% 94.4% orea japan china V ietnam M alaysia H ong kong P ortfolio S ingapore S outh K
1 JTC Quarterly Market Report Industrial Properties, 1Q 2015.
ANNUAL REPORT 2014/2015 47 Our Regional Presence
Singapore Occupancy WALE by NLA 53 Properties Hong Kong 8 Properties 96.7% 4.3 years Japan 22 Properties Number of Properties Number of Geographic Markets South Korea 10 Properties China 117 7 9 Properties Malaysia Investment Properties GFA 14 Properties Vietnam 1 Property S$4.6b 3.3m sqm
48 BUILDING TODAY, FOR TOMORROW Operations Review
Singapore
Number of Properties 53
Book Value S$1,750.6m
Occupancy Rate 94.4%
Wale By NLA 5.6 years
NLA 1,502,549 sqm Jurong Logistics Hub
Singapore’s economic growth slowed to 2.9% in 2014, to a lower occupancy rate of 94.4% as compared to 98.0% from 4.4% in 20131. In the logistics property market, demand last year. Nonetheless, through intensive marketing and leasing for warehouse space was stable, underpinned by Singapore’s efforts, an average positive rental reversion of 7% was achieved status as a favoured logistics hub in Asia. However, revisions for the 143,400 sqm of leases renewed/replaced during the year. to regulatory policies on the use of industrial space have added challenges to the leasing environment. Notably, JTC has The Singapore economy is forecast to expand at a moderate tightened its subletting policy which requires anchor tenants to pace of 2% to 4% in 20151. Supply of warehouse space is occupy a minimum 70% of a property’s gross floor area (“GFA”), projected to increase by 1.6 million sqm or 19% over the next up from 50% previously. three years2, with the majority estimated to be owner-occupied space. While demand for logistics space is likely to remain Against this backdrop, the Manager undertook the following in stable, rental growth is expected to be subdued in view of the FY14/15 to rejuvenate and strengthen the Singapore portfolio: modest economic outlook and upcoming supply. • Commencement of MLT’s second redevelopment project at 5B Toh Guan Road East of a six-storey ramp-up logistics Looking ahead, active asset and lease management remains facility. Targeted for completion in 1Q FY16/17, the a key management priority. Of the 289,300 sqm of net lettable S$107 million project will increase the GFA by 2.7 times area (“NLA”) due for expiry, 58% are leases for nine SUAs. from 23,500 square metres (“sqm”) to 63,500 sqm. The Manager expects that two will remain as SUAs, six will be converted to MTBs and the remaining SUA (76 Pioneer Road) • Acquisition of 190A Pandan Loop, a purpose-built food is slated for redevelopment. The SUA to MTB conversions distribution centre, for S$34.0 million. With a stabilised net are likely to cause a temporary dip in occupancy during the property income (“NPI”) yield of 6.5%, the acquisition is transition and an increase in property expenses. expected to be accretive. The Manager will continue to pursue suitable AEI opportunities During the year, the Manager converted five single-user assets to unlock value from the portfolio. In line with this focus, the (“SUAs”) to multi-tenanted buildings (“MTBs”) upon the expiry of Manager will be embarking on the redevelopment at 76 Pioneer the master leases, which resulted in higher property expenses. Road in mid-FY15/16. Transitory property downtime due to the conversions also led
1 “MTI Maintains 2015 GDP Growth Forecast at 2.0 to 4.0 Per Cent”, Ministry of Trade and Industry, 17 February 2015. 2 JTC Quarterly Market Report Industrial Property, 1Q 2015.
ANNUAL REPORT 2014/2015 49 Operations Review
Hong Kong
Number of Properties 8
Book Value HKD5,770.0m ( S$1,026.1m)
Occupancy Rate 99.8%
Wale By NLA 2.1 years
NLA 205,516 sqm Grandtech Centre
Hong Kong’s economy expanded at a moderate rate of 2.3% in Investor sentiment on the industrial sector remains buoyant 2014, slower than the 2.9% registered in 20133. Nevertheless, even as sellers continue to demand high prices. Buyers are it was another positive year for Hong Kong’s logistics property attracted to potential gains from redeveloping or converting market. Steady demand, coupled with a tight supply of industrial buildings to other uses under the government’s warehouse space, contributed to sustained low vacancy rates revitalisation scheme, while some end-users are purchasing throughout the year. The industry continued to experience properties for owner-occupation in view of the tight supply. positive rental growth in 2014, albeit at a slower rate of 7.5%4, Hence, the acquisition of yield-accretive assets from as compared to 7.9% last year. third-parties is expected to remain a challenge for MLT in the near term. The Manager will continue to actively explore other Against this backdrop, MLT’s Hong Kong portfolio turned in value-enhancing investment opportunities such as asset another strong set of operating results in FY14/15. Leases for repositioning and development projects. approximately 64,000 sqm or 31% of NLA were due for expiry during the year. By year end, the Manager had successfully Approximately 69,400 sqm of NLA in MLT’s portfolio will be renewed/replaced all leases at an average rental reversion expiring in FY15/16. Active negotiations with existing tenants rate of 17%, and maintained a high occupancy rate of 99.8%. for renewals and potential tenants for new leases are well underway and the Manager is confident of renewing or replacing these leases at attractive rental rates.
3 “Chain volume measures of Gross Domestic Product by economic activity for the fourth quarter and the whole year of 2014”, The Government of the Hong Kong SAR Census and Statistics Department, 20 March 2015. 4 CBRE, Hong Kong Industrial MarketView, Q4 2014.
50 BUILDING TODAY, FOR TOMORROW Japan
Number of Properties 22
Book Value JPY83.1b ( S$950.1m)
Occupancy Rate 100%
Wale By NLA 6.1 years
NLA 437,492 sqm Moriya Centre
Despite a lacklustre economic performance with close to As part of active asset management to capture organic growth zero growth, the Japan logistics property market continued opportunities, Phase 2 of the solar panel installation project was to perform well in 2014. Demand for logistics space was firm, completed during the year. To-date, this initiative has installed supported by expansionary requirements from third-party 7.2 megawatts of solar panels at nine properties, generating an logistics service providers (“3PLs”), online retailers and additional revenue stream of JPY296 million ( S$3.3 million) traditional retailers who were expanding into e-commerce. per annum. In FY15/16, the Manager will be commencing an In the Greater Tokyo area, vacancy rate fell to 3.8% in 4Q 2014, AEI at Moriya Centre for the construction of a four-storey and total net absorption for the year was over 190,000 tsubo, warehouse to support the expansion requirements of the the second highest level on record5. existing tenant, Nippon Express. Upon completion in March 2016, the asset will benefit from a 28% increase in NLA and MLT’s Japan portfolio continued to enjoy full occupancy with 31% increase in gross revenue. a weighted average lease expiry of 6.1 years. During the year, two expiring leases with a total NLA of 15,084 sqm were Looking ahead, the Manager expects demand for modern successfully renewed. A small positive rental reversion and an logistics facilities in Japan to remain firm, spurred by the escalation of 1.5% for the initial three years were achieved for growing 3PL sector and continued development of the one of them. e-commerce sector. However, a large supply pipeline of over 200,000 tsubo is expected to come on stream in 2015, All 22 properties in MLT’s portfolio comply with seismic safety raising concerns of a potential supply-demand imbalance7. standards and have a Probable Maximum Loss6 value of less than 15%, indicative of low exposure to earthquake risks. In FY15/16, a lease for approximately 8,600 sqm of space is due No specific earthquake insurance has been taken up, which is to expire. Negotiations with potential tenants for a replacement consistent with the general market practice in Japan. lease have already begun and the Manager is confident of fully leasing the space with no downtime.
5 CBRE Japan Industrial & Logistics MarketView, Q4 2014. 6 Probable Maximum Loss (“PML”) is a gauge commonly used to assess a property’s seismic resistance. A PML of 15% is deemed to be sufficiently safe from earthquakes. 7 CBRE Asia Pacific Real Estate Market Outlook 2015.
ANNUAL REPORT 2014/2015 51 Operations Review
South Korea
Number of Properties 10
Book Value KRW297.4b ( S$365.8m)
Occupancy Rate 98.6%
Wale By NLA 2.4 years
NLA 311,215 sqm Daehwa Logistics Centre9
The South Korean economy expanded by 3.3%8 in 2014, Smart Logistics Centre10 for a total consideration of as growth in the export-reliant economy continued to be KRW46.9 billion. Both assets are located in Gyeonggi-do, weighed down by a lacklustre global economy. Nonetheless, South Korea’s prime logistics hub, with good accessibility to the logistics property market saw firm demand for Grade-A Seoul and the rest of the country. The acquisitions have boosted logistics properties in prime areas, driven by the expansion MLT’s presence in Gyeonggi-do to a total of 10 properties with a of multinational companies, rapid growth of the e-commerce combined GFA of 311,215 sqm. The two assets are fully occupied sector and supportive government measures to develop the by quality tenants comprising local and international logistics third party logistics industry. Investment interest in the sector service providers, and established end-users. With initial remained strong as investors are attracted to the higher yields NPI yields of 8.3% and 7.8% respectively, they are expected offered by logistics assets, relative to other asset classes. to be yield-accretive.
Of the 37,000 sqm of space due for expiry in FY14/15, 100% was Looking ahead, the Manager expects demand for modern successfully renewed or replaced by year end. As part of its warehouses to remain firm, supported by improving domestic active lease management efforts, the Manager had successfully and global economies, although an increase in supply of secured new, quality tenants for three of its properties to add logistics space may put pressure on rentals of older facilities. diversity and stability to the tenant mix. This has brought the The Manager will continue its active leasing efforts to renew occupancy rate of MLT’s portfolio in South Korea to 98.6% as or replace leases for approximately 32,900 sqm of space due at 31 March 2015, up from 96.7% a year ago. for expiry in FY15/16. Whilst competition for acquisitions is expected to remain stiff, the Manager will remain disciplined On the investment front, FY14/15 was an active year for MLT’s and focused in pursuing acquisitions of well located, modern operations in South Korea. MLT completed the acquisitions facilities to strengthen its portfolio. of two Grade-A warehouses – Daehwa Logistics Centre9 and
8 Bank of Korea Real Gross Domestic Product: Q4 and Annual 2014, January 2015. 9 Renamed as Mapletree Logistics Centre – Baekam 2. 10 Renamed as Mapletree Logistics Centre – Majang 1.
52 BUILDING TODAY, FOR TOMORROW China
Number of Properties 9
Book Value CNY1,507.0m ( S$337.5m)
Occupancy Rate 97.9%
Wale By NLA 1.7 years
NLA 421,439 sqm Mapletree Wuxi Logistics Park
China’s economic growth slowed to 7.4% in 201411, as its Zhengzhou of Henan province, a regional distribution hub government continues to steer the economy towards a serving Central China, and the Shanghai Pilot Free Trade Zone “new normal” of slower but more sustainable growth led by respectively. At a total consideration of RMB402.8 million, domestic consumption. In the logistics property market, these acquisitions will be accretive with initial NPI yields of demand for warehouse space has benefitted from the growth 8% and 7.5% respectively. in domestic consumption, with 3PLs, automotive manufacturers and retailers being the key demand drivers. Coupled with a Looking ahead, demand for modern logistics warehouses tight supply of quality logistics facilities, this has kept vacancy in China is expected to remain robust, underpinned by rates stable and supported positive rental growth. rising domestic consumption and the continued growth of e-commerce. However, the supply of logistics facilities is MLT’s China portfolio continued to perform well in FY14/15. projected to increase due to strong investment interest Occupancy rate increased to 97.9% as at 31 March 2015, from both foreign and domestic investors. As such, rental up from 97.5% a year ago. Out of the 92,505 sqm of NLA due growth will likely moderate going forward. In FY15/16, for expiry during the year, 91% was renewed/replaced at an leases for approximately 198,600 sqm of NLA will be expiring. average positive rental reversion of 5%. At Mapletree Xi’an The Manager will continue its active lease management efforts Distribution Centre, the reinstatement of the fire-damaged to renew or replace them at attractive rates and maintain a building has been completed and the property is expected low vacancy rate. to be operational from June 2015.
During the year, MLT acquired two Grade-A logistics facilities from the Sponsor’s development pipeline – Mapletree Zhengzhou Logistics Park and Mapletree Yangshan Bonded Logistics Park. These properties are strategically located in
11 National Bureau of Statistics of China.
ANNUAL REPORT 2014/2015 53 Operations Review
Malaysia
Number of Properties 14
Book Value MYR503m ( S$191.8m)
Occupancy Rate 98.3%
Wale By NLA 2.1 years
NLA 266,735 sqm Celestica Hub
The Malaysian economy expanded by 6.0% in 2014, its fastest The industrial warehouse with a GFA of 63,750 sqm was pace since 2010. Growth was primarily driven by strong domestic acquired for MYR88.5 million. With an initial NPI yield of demand, supported by an improvement in external trade12. approximately 8.4%, the acquisition is expected to be In the logistics property market, tight supply conditions and yield-accretive. strong demand for good quality warehouses continued to drive up rental rates, particularly at preferred locations in Shah Alam. In FY15/16, leases for approximately 119,800 sqm of NLA are due to expire. The Manager expects leasing demand to remain MLT’s Malaysia portfolio reported another set of healthy healthy, underpinned by resilient domestic demand and operating results in FY14/15. About 94% of the 98,402 sqm improving exports, and is confident of renewing or replacing the of NLA due for expiry was replaced or renewed at an average leases at attractive rentals. The Manager is also actively looking positive rental reversion of 6%. Portfolio occupancy was out for acquisition opportunities in Malaysia, particularly in maintained at a high level throughout the year, ending at Klang Valley and Penang, to capitalise on the positive trends. 98.3% as at 31 March 2015.
During the year, MLT strengthened its presence in Malaysia to 14 properties with the acquisition of Flex Hub from Mapletree Industrial Fund, a closed-end fund managed by the Sponsor.
12 Bank Negara Annual Report 2014, 15 March 2015.
54 BUILDING TODAY, FOR TOMORROW Vietnam
Number of Properties 1
Book Value USD6.7m ( S$9.2m)
Occupancy Rate 100%
Wale By NLA 1.1 years
NLA 23,050 sqm Mapletree Logistics Centre
Vietnam’s economy continued to improve with an expansion Vietnam is expected to record another year of growth in 2015. of 5.98% in 2014, compared to 5.42% in 201313. The economic The conclusion of several free trade agreements in 2014 and growth was driven by robust foreign direct investment (“FDI”) the establishment of the ASEAN Economic Community in 2015 and rising exports. Pledged FDI was US$20.23 billion in 2014, could potentially attract more FDI to the country. This in turn exceeding the state’s annual target by 19%. This reflects should help to drive industrial growth and demand for modern sustained investment interest from multinational corporations warehousing facilities. and foreign investors who are attracted to Vietnam’s relatively low labour costs and sizeable domestic market. Leases for 13,194 sqm of space are due to expire in FY15/16. In view of the healthy demand for quality warehouses, the Mapletree Logistics Centre (“MLC”), the only asset in MLT’s Manager is confident of renewing the leases and maintaining Vietnam portfolio, continued its strong performance in FY14/15. a high occupancy level at MLC. In addition, the Manager Occupancy was maintained at 100% as all 9,847 sqm of NLA continues to be on the look-out for opportunities to acquire due for expiry during the year was successfully renewed at quality and well located logistics facilities. an average positive rental reversion of 5%. The property is sought after by 3PLs and manufacturing companies due to its close proximity to Ho Chi Minh City and strategic location in the Vietnam Singapore Industrial Park I in Binh Duong.
13 General Statistics Office of Vietnam.
ANNUAL REPORT 2014/2015 55 Property Portfolio
Singapore
02 34
09 03 11 16 51 10 19
08 22 32 Changi Airport 3325 47 28 12 21 35 26 30 13 36 43 04 07 50 18 5240 41 17 46 49 37 42 53 31 24 20 48 45 05 29 27 23 39 44 06 01 38 Jurong Port
14 Jurong Island PSA Singapore Terminals
15
Expressways Airport Port
56 BUILDING TODAY, FOR TOMORROW 01 02 03 04 TIC Tech Centre 19 Senoko Loop Expeditors Allied Telesis (formerly known as KLW) Occupancy Rate: 55% Occupancy Rate: 75% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 36,143 NLA (sqm): 12,356 NLA (sqm): 12,388 NLA (sqm): 10,593 Number of Tenants: 10 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: LF Logistics Services Pte. Ltd. UPS SCS (Singapore) Pte. Ltd. Expeditors Singapore Pte. Ltd. Allied Telesis International (Asia) Pte. Ltd. Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure (Lease Start Date): (Lease Start Date): (Lease Start Date): Land Leasehold Tenure 30+30 years (16 May 1996) 30+30 years (1 May 1994) 30 years (16 Oct 2003) (Lease Start Date): 30+30 years (15 Feb 2004) Purchase Price: Purchase Price: Purchase Price: S$48.0 million S$15.7 million S$19.6 million Purchase Price: S$12.5 million
05 06 07 08 Mapletree Benoi 37 Penjuru Lane 6 Changi South Lane Armstrong Logistics Hub Occupancy Rate: 100% Occupancy Rate: 88% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 89,385 NLA (sqm): 11,150 NLA (sqm): 11,496 NLA (sqm): 18,871 Number of Tenants: 6 Number of Tenants: 9 Number of Tenants: 2 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: • Menlo Worldwide Santa Fe Relocation Services ST Electronics (Data Centre Armstrong Industrial Asia Pacific Pte. Ltd. (S) Pte. Ltd. Solutions) Pte Ltd Corporation Ltd. • Keppel Sea Scan Pte Ltd Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure • Schenker Singapore (Lease Start Date): (Lease Start Date): (Lease Start Date): (Pte) Ltd 30 years (16 Aug 1996) 30+30 years (1 Jan 1995) 30+30 years (1 Oct 1995) Land Leasehold Tenure Purchase Price: Purchase Price: Purchase Price: (Lease Start Date): S$15.6 million S$11.4 million S$20.0 million 30+30 years (16 Feb 1980) Purchase Price: S$27.4 million
ANNUAL REPORT 2014/2015 57 Property Portfolio
09 10 11 12 70 Alps Avenue Menlo (Alps) Ban Teck Han 5B Toh Guan Road East
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: N.A. as property is under NLA (sqm): 21,408 NLA (sqm): 12,658 NLA (sqm): 14,738 redevelopment Number of Tenants: 13 Number of Tenants: 1 Number of Tenants: 1 NLA (sqm): N.A. List of Major Tenants: List of Major Tenants: List of Major Tenants: Number of Tenants: N.A. • Kuehne + Nagel Pte. Ltd. Menlo Worldwide Asia Ban Teck Han Enterprise • MOL Logistics Pacific Pte Ltd Co Pte. Ltd. List of Major Tenants: N.A. (Singapore) Pte Ltd. Land Leasehold Tenure Land Leasehold Tenure • Korchina Logistics (Lease Start Date): (Lease Start Date): Land Leasehold Tenure (Singapore) Pte. Ltd. Two leases: 30+30 years (1 Oct 1996) (Lease Start Date): 30 years (1 Oct 2001) and 30+30 years (1 Dec 1990) Purchase Price: Land Leasehold Tenure 29 years (16 Jul 2002) (Lease Start Date): S$20.4 million Purchase Price: 30 years (1 Dec 2002) Purchase Price: S$13.7 million S$18.1 million Purchase Price: S$35.0 million
13 14 15 16 50 Airport Boulevard Prima Pulau Sebarok Kenyon
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 22,136 NLA (sqm): 58,296 NLA (sqm): 510,480 NLA (sqm): 14,521 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 3 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: dnata Group Prima Ltd. • Vopak Terminals Kenyon Engineering Singapore Pte. Ltd. Pte Ltd Land Leasehold Tenure Land Leasehold Tenure • Singapore Petroleum (Lease Start Date): (Lease Start Date): Land Leasehold Tenure Company Ltd. 60 years (7 Dec 1979) 99 years (1 Oct 1997) (Lease Start Date): • Singaport Cleanseas 30+23 years (1 Jun 2000) Purchase Price: Purchase Price: Pte. Ltd. S$19.0 million S$26.5 million Purchase Price: Land Leasehold Tenure S$16.5 million (Lease Start Date): 73 years (1 Oct 1997) Purchase Price: S$91.0 million
58 BUILDING TODAY, FOR TOMORROW 17 18 19 20 Toppan 39 Changi South 2 Serangoon 10 Changi Avenue 2 North Avenue 5 South Street 3
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 94% Occupancy Rate: 91% NLA (sqm): 10,469 NLA (sqm): 6,185 NLA (sqm): 24,586 NLA (sqm): 10,697 Number of Tenants: 1 Number of Tenants: 3 Number of Tenants: 9 Number of Tenants: 9 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Toppan Leefung Pte. Ltd. • Goodyear Orient Company • Greene, Tweed & Co. Pte Ltd. • Tesco Singapore Pte. Ltd (Pte) Ltd Land Leasehold Tenure • Cooper Crouse-Hinds Pte Ltd • Strategic Marketing (Lease Start Date): • Faf-Flying Transportation • KX Technologies Pte. Ltd. (S) Pte. Ltd. Two leases: (S) Pte Ltd Land Leasehold Tenure Land Leasehold Tenure 30+30 years (1 Dec 1989) and Land Leasehold Tenure (Lease Start Date): (Lease Start Date): 28+30 years (1 Sep 1991) (Lease Start Date): 30+30 years (1 Nov 1995) 30+30 years (1 Mar 1995) Purchase Price: 30+30 years (1 Apr 1995) Purchase Price: Purchase Price: S$12.2 million Purchase Price: S$45.0 million S$17.3 million S$9.1 million
21 22 23 24 Popular 85 Defu Lane 10 31 Penjuru Lane 8 Changi South Lane (formerly known as SH Cogent (Penjuru Lane)) Occupancy Rate: 100% Occupancy Rate: 92% Occupancy Rate: 38% Occupancy Rate: 94% NLA (sqm): 7,531 NLA (sqm): 10,109 NLA (sqm): 15,153 NLA (sqm): 9,560 Number of Tenants: 1 Number of Tenants: 9 Number of Tenants: 4 Number of Tenants: 3 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Popular Holdings Ltd. • Tupperware Singapore • Uni Brands Pte. Ltd • Goodrich Global Pte. Ltd Pte Ltd Land Leasehold Tenure • Absotech Pte. Ltd • Goldenlink Auto Pte Ltd • Benning Power (Lease Start Date): • Siki (Singapore) Pte. Ltd. Land Leasehold Tenure 30+30 years (16 Nov 1996) Electronics Pte Ltd Land Leasehold Tenure (Lease Start Date): Purchase Price: Land Leasehold Tenure (Lease Start Date): 30+30 years (1 Sep 1997) (Lease Start Date): S$11.6 million 30+13 years (1 Feb 1989) Purchase Price: 30+30 years (1 May 1990) Purchase Price: S$15.6 million Purchase Price: S$16.2 million S$17.0 million
ANNUAL REPORT 2014/2015 59 Property Portfolio
25 26 27 28 Markono 138 Joo Seng Road Kim Seng 7 Tai Seng Drive
Occupancy Rate: 100% Occupancy Rate: 85% Occupancy Rate: 100% Occupancy Rate: 83% NLA (sqm): 8,664 NLA (sqm): 8,835 NLA (sqm): 11,512 NLA (sqm): 20,544 Number of Tenants: 1 Number of Tenants: 6 Number of Tenants: 1 Number of Tenants: 4 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Markono Logistics Pte. Ltd. • The Event Company Staging Kim Seng Holdings Pte Ltd • DHL Supply Chain (Singapore) Connections Pte Ltd Pte Ltd Land Leasehold Tenure Land Leasehold Tenure (Lease Start Date): • Pan-Malayan Pharmaceuticals (Lease Start Date): • Yamaha Music (Asia) Private 30+30 years (16 Nov 1996) Pte Ltd 30+30 years (16 Nov 1989) Limited Purchase Price: • Takashimaya Singapore Ltd Purchase Price: Land Leasehold Tenure S$11.0 million Land Leasehold Tenure S$13.0 million (Lease Start Date): (Lease Start Date): 30+30 years (16 Mar 1993) 30+30 years (1 Sep 1991) Purchase Price: Purchase Price: S$38.0 million S$13.0 million
29 30 31 32 Jurong Logistics Hub Kingsmen Creatives 1 Genting Lane 20 Tampines Street 92
Occupancy Rate: 98% Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 124,566 NLA (sqm): 11,315 NLA (sqm): 8,297 NLA (sqm): 9,251 Number of Tenants: 56 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: • Keppel Logistics Pte Ltd Kingsmen Creatives Ltd. Furniture Club Holdings Pte. Ltd. Dou Yee Technologies Pte Ltd • Chasen Logistics Services Ltd Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure • Yamaha Motor Distribution (Lease Start Date): (Lease Start Date): (Lease Start Date): Singapore Pte Ltd 30+30 years (1 Oct 1998) 60 years (1 Apr 1988) 30+30 years (1 Jul 1990) Land Leasehold Tenure Purchase Price: Purchase Price: Purchase Price: (Lease Start Date): S$13.9 million S$11.0 million S$10.0 million 30+30 years (1 Jan 2001) Purchase Price: S$168.0 million
60 BUILDING TODAY, FOR TOMORROW 33 34 35 36 521 Bukit Batok 6 Marsiling Lane 134 Joo Seng Road Union Steel (Pioneer) Street 23 Occupancy Rate: 94% Occupancy Rate: 86% Occupancy Rate: 73% Occupancy Rate: 100% NLA (sqm): 14,284 NLA (sqm): 14,961 NLA (sqm): 5,682 NLA (sqm): 5,442 Number of Tenants: 11 Number of Tenants: 5 Number of Tenants: 5 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: • Alife Air Automobiles Pte Ltd • ABB Pte. Ltd. • Luxur Home Pte. Ltd. Union Steel Pte Ltd • K2 Specialist Services Pte. Ltd • Intevac Asia Pte Ltd • Nat Aire Builder & Land Leasehold Tenure • AAF Singapore Pte. Ltd • Borneo Motors Distribution Pte. Ltd (Lease Start Date): 30+30 years (1 May 1993) Land Leasehold Tenure (Singapore) Pte Ltd • Schlemmer (SEA) Pte. Ltd. (Lease Start Date): Land Leasehold Tenure Land Leasehold Tenure Purchase Price: 30+30 years (1 Sep 1995) (Lease Start Date): (Lease Start Date): S$6.9 million 60 years (1 Jun 1978) Purchase Price: 30+30 years (1 May 1992) S$25.4 million Purchase Price: Purchase Price: S$18.0 million S$10.7 million
37 38 39 40 119 Neythal Road 30 Tuas South Avenue 8 Union Steel (Tuas View) Pioneer Districentre
Occupancy Rate: 59% Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 11,989 NLA (sqm): 5,233 NLA (sqm): 4,405 NLA (sqm): 12,576 Number of Tenants: 5 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: • Starcoat Pte. Ltd. Lai Yew Seng Pte Ltd YLS Steel Pte Ltd Pioneer Districentre Pte. Ltd. • Ever Glory Logistics Pte Ltd Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure (Lease Start Date): (Lease Start Date): (Lease Start Date): Land Leasehold Tenure 30+30 years (30 Aug 1998) 60 years (30 Oct 1996) 30+12+12 years (1 Aug 1982) (Lease Start Date): 60 years (1 Jul 1979) Purchase Price: Purchase Price: Purchase Price: S$6.9 million S$5.8 million S$10.0 million Purchase Price: S$17.3 million
ANNUAL REPORT 2014/2015 61 Property Portfolio
41 42 43 44 76 Pioneer Road 3A Jalan Terusan 30 Boon Lay Way Menlo (Benoi) (formerly known as Menlo (Boon Lay Way)) Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 35% Occupancy Rate: 100% NLA (sqm): 40,922 NLA (sqm): 20,124 NLA (sqm): 31,093 NLA (sqm): 6,948 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 3 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Soon Hock Investment Sagawa Express Singapore • Menlo Worldwide Asia Pacific Menlo Worldwide Asia Pacific Group Pte Ltd Pte. Ltd. Pte Ltd Pte Ltd Land Leasehold Tenure Land Leasehold Tenure • Yamato Tidiki Express Land Leasehold Tenure (Lease Start Date): (Lease Start Date): Pte. Ltd. (Lease Start Date): 30+30 years (1 Aug 1993) 30+12 years (1 Sep 1995) Land Leasehold Tenure 30+20 years (16 Feb 1980) Purchase Price: Purchase Price: (Lease Start Date): Purchase Price: S$40.0 million S$26.5 million 30+15 years (16 Jul 1989) S$7.6 million Purchase Price: S$48.0 million
45 46 47 48 SH Cogent 15 Changi South Natural Cool AW Centre (Penjuru Close) (formerly known as Lifestyle Hub CEVA (Changi South))
Occupancy Rate: 100% Occupancy Rate: 50% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 41,253 NLA (sqm): 23,176 NLA (sqm): 19,708 NLA (sqm): 10,967 Number of Tenants: 1 Number of Tenants: 2 Number of Tenants: 1 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: SH Cogent Logistics • CEVA Freight Natural Cool Investments Pte Ltd AW Transport & Warehousing (Singapore) Pte Ltd Pte Ltd Pte. Ltd. Land Leasehold Tenure Land Leasehold Tenure • Rohm Semiconductor (Lease Start Date): Land Leasehold Tenure (Lease Start Date): Singapore Pte Ltd 30+30 years (1 Feb 2007) (Lease Start Date): 30+30 years (1 Jun 1997) 29 years (1 Jun 2006) Land Leasehold Tenure Purchase Price: (Lease Start Date): Purchase Price: S$53.0 million Purchase Price: 25+30 years (16 Oct 1999) S$43.0 million S$18.3 million Purchase Price: S$34.5 million
62 BUILDING TODAY, FOR TOMORROW 49 50 51 52 Liang Huat Building JEP Centre NS Tang Building Jian Huang Building
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 36,331 NLA (sqm): 9,920 NLA (sqm): 8,122 NLA (sqm): 15,397 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Khai Wah Development Pte Ltd JEP Precision Engineering Pte Ltd N.S. Tang Pte Ltd Jian Huang Engineering Pte Ltd Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure (Lease Start Date): (Lease Start Date): (Lease Start Date): (Lease Start Date): 30+30 years (16 Apr 1995) Two leases: 30+28 years (1 Dec 1993) 30 years (16 Sep 2007) 30 years (16 Feb 2007) and Purchase Price: Purchase Price: 30 years (16 Oct 2006) Purchase Price: S$55.0 million S$13.8 million S$24.5 million Purchase Price: S$16.8 million
53 190A Pandan Loop
Occupancy Rate: 82% NLA (sqm): 10,122 Number of Tenants: 2 List of Major Tenants: • Havi Logistics (Singapore) Pte. Ltd • ARYZTA Singapore Pte. Ltd Land Leasehold Tenure (Lease Start Date): 60 years (1 Jan 1994) Vendor: Havi Logistics (Singapore) Pte. Ltd. Purchase Price: S$36.6 million1
1 Inclusive of JTC’s upfront land premium of approximately S$2.6 million.
ANNUAL REPORT 2014/2015 63 Property Portfolio
Hong Kong
Shenzhen
Deep Bay Sheung Shui
58
Tai Po
New Territories
61 60 56 57 59 55 54 Shatin
Hong Kong Kwai Chung International Airport Container Terminals
Lantau Island Hong Kong Island
Railways Expressways Airport Port
64 BUILDING TODAY, FOR TOMORROW 54 55 56 57 Tsuen Wan No. 1 Shatin No. 2 Shatin No. 3 Shatin No. 4
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 17,094 NLA (sqm): 26,201 NLA (sqm): 24,346 NLA (sqm): 54,137 Number of Tenants: 7 Number of Tenants: 2 Number of Tenants: 4 Number of Tenants: 13 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Yusen Air & Sea Service (HK) Ltd • Taiun (HK) Co Ltd. • MOL Logistics • UTi Worldwide Inc. Land Leasehold Tenure • Ever Gain Company Limited • Equinix Information Technologies • Jacobson Group Hong Kong Limited Management Limited (Lease Start Date): Land Leasehold Tenure 149 years (1 Jul 1898) (Lease Start Date): • Vantec Hitachi Transport • Vantec Hitachi Transport Purchase Price: 60 years (27 Nov 1987) System (Hong Kong) Limited System (Hong Kong) Limited HKD206.0 million Purchase Price: Land Leasehold Tenure Land Leasehold Tenure (S$38.5 million) HKD341.0 million (Lease Start Date): (Lease Start Date): (S$63.8 million) 58 years (28 Dec 1989) 55 years (4 May 1992) Purchase Price: Purchase Price: HKD325.9 million HKD1,037.0 million (S$61.0 million) (S$194.0 million)
58 59 60 61 Bossini Logistics Centre 1 Wang Wo Tsai Street Grandtech Centre Shatin No. 5 (formerly known as AsiaTone i-Centre))
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 99% Occupancy Rate: 100% NLA (sqm): 12,763 NLA (sqm): 17,073 NLA (sqm): 47,304 NLA (sqm): 6,599 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 52 Number of Tenants: 4 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Bossini Enterprises Limited Equinix Information Technologies • Jennex Technology Limited • DKSH Hong Kong Limited Land Leasehold Tenure Hong Kong Limited • Menlo Worldwide • Miko Cold Storage Services (Lease Start Date): Land Leasehold Tenure Hong Kong Limited Limited 60 years (27 Nov 1987) (Lease Start Date): • Auto Italia Ltd. Land Leasehold Tenure 54 years (26 Nov 1993) Purchase Price: Land Leasehold Tenure (Lease Start Date): HKD113.0 million Purchase Price: (Lease Start Date): 149 years (1 Jul 1898) (S$21.1 million) HKD210.0 million 56 years (19 Nov 1991) Purchase Price: (S$39.3 million) Purchase Price: HKD66.0 million HKD780.0 million (S$12.3 million) (S$145.9 million)
* Exchange rates for overseas properties are as per the date of purchase in their respective announcements.
ANNUAL REPORT 2014/2015 65 Property Portfolio
Japan Hokkaido
68 77
Chitose Airport
71
78 62 74 Narita Airport 81 73 72 69 79 80 67 70 65 66 63 75 Haneda Airport 82
Kansai Airport 64 Centrair Airport 83 Hiroshima Airport 76
Fukuoka Aiport Shikoku
Kyushu
Railways Expressways Airport
66 BUILDING TODAY, FOR TOMORROW 62 63 64 65 Gyoda Centre Ayase Centre Kyoto Centre Atsugi Centre
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 8,622 NLA (sqm): 3,903 NLA (sqm): 22,510 NLA (sqm): 15,693 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Itochu Logistics Corp. Nippon Access, Inc. Nichirei Logistics Group Inc Senko Co., Ltd. Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure (Lease Start Date): (Lease Start Date): (Lease Start Date): (Lease Start Date): Freehold Freehold Freehold Freehold Purchase Price: Purchase Price: Purchase Price: Purchase Price: JPY1,806.4 million JPY1,274.6 million JPY8,809.0 million JPY3,660.0 million (S$24.4 million) (S$16.4 million) (S$113.6 million) (S$47.2 million)
66 67 68 69 Zama Centre Funabashi Centre Shiroishi Centre Kashiwa Centre
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 40,609 NLA (sqm): 17,664 NLA (sqm): 11,181 NLA (sqm): 29,164 Number of Tenants: 1 Number of Tenants: 2 Number of Tenants: 1 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Nittsu NEC Logistics, Ltd • Nippon Access, Inc. Hokkaido Nissin Co., Ltd Toshiba Logistics Corporation Land Leasehold Tenure • Kokubu & Co., Ltd. Land Leasehold Tenure (Lease Start Date): Land Leasehold Tenure (Lease Start Date): Land Leasehold Tenure Freehold (Lease Start Date): Freehold (Lease Start Date): Freehold Purchase Price: Freehold Purchase Price: JPY10,337.0 million Purchase Price: JPY1,450.0 million Purchase Price: (S$133.3 million) JPY3,719.4 million (S$18.7 million) JPY6,900.0 million (S$48.0 million) (S$90.4 million)
* Exchange rates for overseas properties are as per the date of purchase in their respective announcements.
ANNUAL REPORT 2014/2015 67 Property Portfolio
70 71 72 73 Shonan Centre Sendai Centre Iwatsuki Centre Iruma Centre
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 30,489 NLA (sqm): 4,249 NLA (sqm): 10,908 NLA (sqm): 26,204 Number of Tenants: 1 Number of Tenants: 2 Number of Tenants: 1 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Marubeni Corporation • Kibun Fresh Systems Co., Ltd Oji Transportation Co., Ltd. Oji Transportation Co., Ltd. Land Leasehold Tenure • Shiogama Rikuun K.K. Land Leasehold Tenure Land Leasehold Tenure (Lease Start Date): (Lease Start Date): (Lease Start Date): Land Leasehold Tenure Freehold Freehold Freehold (Lease Start Date): Purchase Price: Freehold Purchase Price: Purchase Price: JPY4,360.0 million JPY4,800.0 million JPY3,400.0 million Purchase Price: (S$68.0 million) (S$76.9 million) (S$54.5 million) JPY1,490.0 million (S$21.7 million)
74 75 76 77 Noda Centre Toki Centre Hiroshima Centre Eniwa Centre
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 35,567 NLA (sqm): 16,545 NLA (sqm): 43,640 NLA (sqm): 17,498 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: SBS Logicom Co., Ltd Hamakyorex Co., Ltd Nippon Access, Inc. Kokubu & Co., Ltd Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure (Lease Start Date): (Lease Start Date): (Lease Start Date): (Lease Start Date): Freehold Freehold Freehold Freehold Purchase Price: Purchase Price: Purchase Price: Purchase Price: JPY4,800.0 million JPY1,050 million JPY7,300 million JPY1,460 million (S$76.9 million) (S$16.2 million) (S$114.2 million) (S$22.1 million)
* Exchange rates for overseas properties are as per the date of purchase in their respective announcements.
68 BUILDING TODAY, FOR TOMORROW 78 79 80 81 Sano Centre Moriya Centre Mokurenji Centre Mizuhomachi Centre
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 7,217 NLA (sqm): 32,688 NLA (sqm): 23,864 NLA (sqm): 20,212 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Arata Corporation Nippon Express Co., Ltd. Logicom Inc. Logicom Inc. Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure (Lease Start Date): (Lease Start Date): (Lease Start Date): (Lease Start Date): Freehold Freehold Freehold Freehold Purchase Price: Purchase Price: Purchase Price: Purchase Price: JPY1,050 million JPY4,640 million JPY3,865 million JPY3,500.0 million (S$15.9 million) (S$70.3 million) (S$58.6 million) (S$53.0 million)
82 83 Aichi Miyoshi Centre Kyotanabe Centre
Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 6,723 NLA (sqm): 12,343 Number of Tenants: 1 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: Hokkoh Transportation Inc. Edion Corporation Land Leasehold Tenure Land Leasehold Tenure (Lease Start Date): (Lease Start Date): Freehold Freehold Purchase Price: Purchase Price: JPY1,155.0 million JPY1,830.0 million (S$17.5 million) (S$27.7 million)
ANNUAL REPORT 2014/2015 69 Property Portfolio
South Korea
Seoul Incheon International Airport 91 Wonju Airport 93 84 Port Incheon 92 85 86 89 Pyeongtaek Port 87 88 90
Busan Port
Railways Expressways Airport Port
70 BUILDING TODAY, FOR TOMORROW 84 85 86 87 Mapletree Logistics Mapletree Logistics Mapletree Logistics Mapletree Logistics Centre - Yeoju (formerly Centre - Baekam 1 Centre - Iljuk (formerly Hub - Pyeongtaek known as Yeoju Centre) (formerly known as known as Iljuk Centre) (formerly known as KPPC Multi-Q Centre) Pyeongtaek Centre)
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 10,959 NLA (sqm): 32,898 NLA (sqm): 23,398 NLA (sqm): 100,914 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 2 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Taeun Logistics Co., Ltd. MQ Logistics Co., Ltd • Taeun Logistics Co., Ltd. KPPC Co., Ltd. Land Leasehold Tenure Land Leasehold Tenure • SNS Logistics Land Leasehold Tenure (Lease Start Date): (Lease Start Date): Land Leasehold Tenure (Lease Start Date): Freehold Freehold (Lease Start Date): Freehold Purchase Price: Purchase Price: Freehold Purchase Price: KRW11,650 million KRW28,000 million Purchase Price: KRW75,580 million (S$18.2 million) (S$32.1 million) KRW22,000 million (S$85.9 million) (S$25.5 million)
88 89 90 91 Mapletree Logistics Mapletree Logistics Mapletree Logistics Mapletree Logistics Centre - Anseong Cold Centre - Yonging Cold Centre - Namanseong Centre - Seoicheon (formerly known as (formerly known as Dooil (formerly known as (formerly known as Jungbu Cold Warehouse) Cold Warehouse) Hyundai Logistics Centre) The Box Centre) Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 86% Occupancy Rate: 100% NLA (sqm): 20,791 NLA (sqm): 18,031 NLA (sqm): 32,317 NLA (sqm): 27,016 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 2 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Taeun Logistics Co., Ltd. Taeun Logistics Co., Ltd. • Dongsuh Food Oakline Co. Ltd Land Leasehold Tenure Land Leasehold Tenure • Yongma Logis Land Leasehold Tenure (Lease Start Date): (Lease Start Date): (Lease Start Date): Land Leasehold Tenure Freehold Freehold Freehold (Lease Start Date): Purchase Price: Purchase Price: Freehold Purchase Price: KRW28,750 million KRW33,500 million KRW30,000 million Purchase Price: (S$32.0 million) (S$37.1 million) (S$33.3 million) KRW22,500 million (S$24.7 million)
* Exchange rates for overseas properties are as per the date of purchase in their respective announcements.
ANNUAL REPORT 2014/2015 71 Property Portfolio
92 93 Mapletree Logistics Mapletree Logistics Centre - Baekam 2 Centre - Majang 1 (formerly known as (formerly known as Daehwa Logistics Centre) Smart Logistics Centre) Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 25,619 NLA (sqm): 19,273 Number of Tenants: 2 Number of Tenants: 2 List of Major Tenants: List of Major Tenants: • Daehwa Logistics Co., Ltd • Smart Logistics • Ebay • Smart Global Land Leasehold Tenure Land Leasehold Tenure (Lease Start Date): (Lease Start Date): Freehold Freehold Vendor: Vendor: Daehwa Logistics Co., Ltd Smart Logis Asset Development Co., Ltd Purchase Price: KRW25,500 million Purchase Price: (S$31.1 million) KRW21,400 million (S$25.5 million)
* Exchange rates for overseas properties are as per the date of purchase in their respective announcements.
72 BUILDING TODAY, FOR TOMORROW China
Beijing
Zhengzhou 95 Xi’an 102 100 Shanghai
Yangshan Port
Guangzhou 96
Jiading
99 WaiGaoQiao Port 98 Shanghai 97 Pudong International Airport 94 Hong Qiao Minhang International Airport Nanhui
Fengxian
101
Yangshan Port
Railways Expressways Airport Port
ANNUAL REPORT 2014/2015 73 Property Portfolio
94 95 96 97 Ouluo Logistics Centre Mapletree Xi’an Mapletree AIP Northwest Logistics Distribution Centre Park (Phase 1) Occupancy Rate: 85% Occupancy Rate: N.A.1 Occupancy Rate: 100% Occupancy Rate: 98% NLA (sqm): 33,322 NLA (sqm): 23,176 NLA (sqm): 117,146 NLA (sqm): 30,010 Number of Tenants: 3 Number of Tenants: N.A. Number of Tenants: 1 Number of Tenants: 6 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: • DHL N.A. Guangzhou Eastern American • Shanghai Dia Retail Co., Ltd • New Times Int’l Land Leasehold Tenure Steel Structure Manufacturing Transportation Service Co. (Lease Start Date): Co Ltd • Zhengming • APEX 50 years (3 June 2005) Land Leasehold Tenure Land Leasehold Tenure (Lease Start Date): Land Leasehold Tenure Purchase Price: (Lease Start Date): 46 years (27 Jun 2006) (Lease Start Date): RMB90.0 million 50 years (10 Jan 2005) 50 years (4 Sep 2002) (S$17.8 million) Purchase Price: Purchase Price: RMB241.3 million Purchase Price: RMB100.0 million (S$47.8 million) RMB120.0 million (S$19.6 million) (S$23.8 million)
98 99 100 101 Northwest Logistics ISH WaiGaoQiao Mapletree Wuxi Mapletree Yangshan Park (Phase 2) Logistics Park Bonded Logistics Park
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 94% Occupancy Rate: 100% NLA (sqm): 10,933 NLA (sqm): 37,698 NLA (sqm): 45,084 NLA (sqm): 45,940 Number of Tenants: 2 Number of Tenants: 2 Number of Tenants: 8 Number of Tenants: 2 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Shanghai Digital China • Integrated Shun Hing Logistics • Suzhou Huayu • Shanghai Oceaneast Co., Ltd. (Shanghai) Co. Ltd. • Fiege International Freight International Logistics Co., Ltd Land Leasehold Tenure Land Leasehold Tenure Forwarder Co., Ltd • Shanghai Bang Da Xin (Lease Start Date): (Lease Start Date): • Konoike Logistics Logistics Co., Ltd 50 years (30 Oct 2006) 50 years (1 Jan 1995) (Shanghai) Co., Ltd Land Leasehold Tenure (Lease Start Date): Purchase Price: Purchase Price: Land Leasehold Tenure 50 years (21 Aug 2006) RMB55.0 million RMB158.3 million (Lease Start Date): (S$10.8 million) (S$31.0 million) 50 years (31 Dec 2006) Vendor: Mapletree Investments Pte Ltd Purchase Price: RMB116.0 million Purchase Price: (S$22.8 million) RMB197.2 million (S$41.1 million)
74 BUILDING TODAY, FOR TOMORROW 102 Mapletree Zhengzhou Logistics Park Occupancy Rate: 100% NLA (sqm): 78,130 Number of Tenants: 7 List of Major Tenants: • Zhengzhou Deppon Logistics • Henan Shangchu Land Leasehold Tenure (Lease Start Date): 50 years (30 May 2012) Vendor: Mapletree Investments Pte Ltd Purchase Price: RMB205.6 million (S$42.8 million)
* Exchange rates for overseas properties are as per the date of purchase in their respective announcements. 1 At Mapletree Xi’an Distribution Centre, business operations were disrupted by a fire incident in February 2014 which caused damage to one of the two buildings. The property is insured for physical damage and loss of business income for a period of eighteen months. The building was being reinstated in FY14/15.
ANNUAL REPORT 2014/2015 75 Property Portfolio
Malaysia
Perlis
Kedah
Penang
Penang International Airport
Kelantan Terengganu
Selangor
Petaling Jaya Port Klang Shah Alam Perak 103 WestPort 104 112 113 105 106 111 108 Subang Jaya 109 Pahang 107 Puchong
Kuala Lumpur Selangor International Airport Kuala Lumpur
Senai International Kuala Lumpur Airport International Airport
Negeri Sembilan 110 Senai Industrial Park 114 Senai Malacca
116 Johor
115 Senai International Airport Johor Port
Port of Tanjong Pelepas Singapore
Singapore Changi Airport
Railways Expressways Airport Port
76 BUILDING TODAY, FOR TOMORROW 103 104 105 106 Pancuran Zentraline Subang 1 Subang 2
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 29,783 NLA (sqm): 14,529 NLA (sqm): 12,873 NLA (sqm): 8,297 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 2 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Nippon Express LF Logistics Services • Ferro Futsal Sdn Bhd Pos Malaysia Berhad (M) Sdn Bhd (M) Sdn Bhd • Ecart Services Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure Malaysia Sdn Bhd (Lease Start Date): (Lease Start Date): (Lease Start Date): Land Leasehold Tenure 99 years (17 Jul 1989) 99 years (19 Apr 1996) 99 years (23 Dec 1995) (Lease Start Date): Purchase Price: Purchase Price: Purchase Price: 99 years (12 Mar 1996) MYR17.2 million MYR45.0 million MYR25.0 million Purchase Price: (S$7.7 million) (S$20.1 million) (S$10.9 million) MYR25.1 million (S$11.2 million)
107 108 109 110 Chee Wah Subang 3 Subang 4 Senai - UPS
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 51% NLA (sqm): 7,705 NLA (sqm): 8,376 NLA (sqm): 4,518 NLA (sqm): 9,069 Number of Tenants: 2 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: • Nature Environment Products FM Global Logistics (M) Sdn Bhd FM Global Logistics (M) Sdn Bhd UPS SCS (M) Services Sdn Bhd • The Cool (Malaysia) Sdn Bhd Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure (Lease Start Date): Land Leasehold Tenure (Lease Start Date): (Lease Start Date): 99 years (13 Dec 2006) (Lease Start Date): 99 years (30 Nov 1990) Freehold Freehold Purchase Price: Purchase Price: Purchase Price: MYR9.5 million Purchase Price: MYR19.9 million MYR25.5 million (S$4.1 million) MYR13.0 million (S$8.7 million) (S$11.1 million) (S$5.7 million)
* Exchange rates for overseas properties are as per the date of purchase in their respective announcements.
ANNUAL REPORT 2014/2015 77 Property Portfolio
111 112 113 114 Linfox Century G-Force Celestica Hub
Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 17,984 NLA (sqm): 25,734 NLA (sqm): 18,670 NLA (sqm): 22,304 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 1 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: List of Major Tenants: List of Major Tenants: Linfox M Logistics (M) Continental Tyre PJ G-Force Sdn Bhd Celestica (AMS) Sdn Bhd Sdn Bhd Malaysia Sdn. Bhd. Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure Land Leasehold Tenure (Lease Start Date): (Lease Start Date): (Lease Start Date): (Lease Start Date): Freehold Freehold Freehold Freehold Purchase Price: Purchase Price: Purchase Price: Purchase Price: MYR35.2 million MYR27.5 million MYR35.0 million MYR32.0 million (S$14.8 million) (S$11.2 million) (S$15.2 million) (S$13.4 million)
115 116 Padi Warehouse Flex Hub
Occupancy Rate: 100% Occupancy Rate: 100% NLA (sqm): 23,717 NLA (sqm): 63,175 Number of Tenants: 1 Number of Tenants: 1 List of Major Tenants: List of Major Tenants: Padiberas Nasional Berhad Classic Advantage Sdn. Bhd. Land Leasehold Tenure Land Leasehold Tenure (Lease Start Date): (Lease Start Date): 60 years (22 Mar 1983) 60 years (1 Apr 2006) Purchase Price: Vendor: MYR31.5 million Mapletree Industrial Fund (S$12.8 million) Purchase Price: MYR88.5 million (S$34.3 million)
* Exchange rates for overseas properties are as per the date of purchase in their respective announcements.
78 BUILDING TODAY, FOR TOMORROW Vietnam
Hanoi
Phu Bai International Airport 117 Da Nang Mapletree Logistics International Airport Centre Da Nang Port Occupancy Rate: 100% NLA (sqm): 23,050 Number of Tenants: 5 List of Major Tenants: • Yamaha Motor Vietnam • Nippon Express (Vietnam) Co., Ltd • Cargo International Logistics Co., Ltd Nha Trang Port • Nitto Denko Tape Materials (Vietnam) Co., Ltd • Yusen Logistics Solutions 117 (Vietnam) Co., Ltd Tan Son Nhat Ho Chi Minh City Land Leasehold Tenure International Airport (Lease Start Date): Saigon Port 42 years (8 Nov 2006) Purchase Price: USD6.4 million (S$8.8 million)
Railways Expressways Airport Port
ANNUAL REPORT 2014/2015 79 Financial Review
Statement of Total Returns Group Increase/ FY14/15 FY13/14 (Decrease) (S$’000) (S$’000) % Gross revenue 330,114 310,709 6.2 Property expenses (52,669) (43,074) 22.3 Net property income (“NPI”) 277,445 267,635 3.7 Interest income 855 629 35.9 Manager’s management fees (32,693) (30,775) 6.2 Trustee’s fee (648) (616) 5.2 Other trust income 9,060 13,203 (31.4) Borrowing costs (33,167) (29,354) 13.0 Net investment income 220,852 220,722 0.1 Amount distributable 203,722 198,545 2.6 - To perpetual securities holders 18,813 18,813 - - To Unitholders* 184,909 179,732 2.9 Available distribution per unit (cents) 7.50 7.35 2.0
* This included partial distribution of the gain from the divestment of 30 Woodlands Loop amounting to S$4.96 million (distributed over eight quarters from 1Q FY13/14).
Gross Revenue Net Property Income Gross revenue for FY14/15 was S$330.1 million, representing Consequently, NPI for FY14/15 was S$277.4 million, which was an increase of S$19.4 million or 6.2% year-on-year (“y-o-y”). S$9.8 million or 3.7% higher than the previous year. Singapore The increase in revenue was mainly due to contributions from remained the largest contributor accounting for 43% of NPI, the six properties acquired during FY14/15, full year contribution followed by Japan and Hong Kong which accounted for 20% from Mapletree Benoi Logistics Hub (“MBLH”) as well as and 16% of NPI respectively. overall positive rental reversions achieved for the portfolio. The revenue growth was partly offset by lower occupancy Net Investment Income in several Singapore properties that were converted from single-user assets (“SUAs”) to multi-tenanted buildings (“MTBs”) Borrowing costs increased by S$3.8 million or 13.0% to during the year, absence of revenue from 5B Toh Guan Road S$33.2 million, mainly due to incremental borrowings to fund East which is undergoing redevelopment, and impact of a acquisitions and capital expenditure. weaker Japanese Yen. As the income streams from Japan are substantially hedged, the impact to distribution from the weaker Accordingly, net investment income increased by S$0.1 million Japanese Yen was mitigated. or 0.1% y-o-y to S$220.9 million.
Property Expenses Distributions to Unitholders Property expenses for FY14/15 increased by S$9.6 million Amount distributable to Unitholders increased 2.9% y-o-y to or 22.3% y-o-y, to S$52.7 million. The increase in property S$184.9 million while DPU rose 2.0% to 7.50 cents. Included expenses was mainly due to the enlarged portfolio, including in the distributable income for both FY13/14 and FY14/15 was MBLH, and higher costs associated with the conversion of the partial distribution of the net gain from the divestment of SUAs to MTBs. 30 Woodlands Loop of S$4.96 million (distributed over eight quarters from 1Q FY13/14).
80 BUILDING TODAY, FOR TOMORROW Group As at As at Change 31 March 2015 31 March 2014 % (S$’000) (S$’000) Total assets 4,787,701 4,396,985 8.9 Total liabilities 1,899,376 1,664,802 14.1 Total borrowings 1,631,878 1,455,377 12.1 Net assets attributable to Unitholders 2,538,273 2,381,864 6.6 Net asset value per Unit (S$) 1.03 0.97 6.2
Total assets increased by S$390.7 million to S$4,787.7 million Taking into account the increased valuation of investment as at 31 March 2015, from S$4,397.0 million as at 31 March 2014. properties, aggregate leverage ratio increased slightly to 34.3%, The increase was primarily attributed to acquisitions and capital from 33.3% at the start of the fi nancial year. expenditure of S$271.1 million, a portfolio revaluation gain of S$84.0 million largely from properties in Hong Kong and net Net Assets Attributable to Unitholders translation gain on the portfolio (largely from the stronger Hong Kong Dollar, partly off set by a weaker Japanese Yen). As at 31 March 2015, MLT’s net assets increased by 6.6% to During the year, MLT acquired six properties, increasing the S$2,538.3 million over the previous year, translating to a higher total number of properties to 117 as at 31 March 2015. net asset value per unit of S$1.03, compared with S$0.97 as at 31 March 2014. Borrowings and Aggregate Leverage Ratio Cashfl ow Total borrowings increased by S$176.5 million to S$1,631.9 million as at 31 March 2015 due to additional debt taken to As at 31 March 2015, the value of cash and cash equivalents fund acquisitions and capital expenditure. While additional of MLT Group stood at S$106.9 million, compared with investments in acquisitions and capital expenditure amounted S$114.3 million as at 31 March 2014. The lower quantum was to S$271.1 million for the year, total borrowings increased by mainly attributable to investing activities during the year. a lower quantum as the depreciation of Japanese Yen led The cashfl ows used in investing activities were mainly for the to lower translated Japanese Yen borrowings. In addition, purchase of investment properties and capital expenditure the investments were partially funded by proceeds from the while the cashfl ows used in fi nancing activities were largely Distribution Reinvestment Plan and working capital. for repayment of borrowings and distributions to Unitholders.
Gross Revenue Net Property Income 12 months ended 31 March 2015 12 months ended 31 March 2015
Singapore 45.7% Singapore 42.9% Japan 19.6% Japan 20.4% Hong Kong 14.0% Hong Kong 15.8% South Korea 9.2% South Korea 9.7% China 6.3% China 5.6% Malaysia 4.8% Malaysia 5.2% Vietnam 0.4% Vietnam 0.4%
Gross Revenue Net Property Income 12 months ended 31 March 2014 12 months ended 31 March 2014
Singapore 46.0% Singapore 44.1% Japan 21.4% Japan 21.7% Hong Kong 13.6% Hong Kong 14.9% South Korea 8.9% South Korea 9.5% China 5.6% China 5.1% Malaysia 4.1% Malaysia 4.3% Vietnam 0.4% Vietnam 0.4%
ANNUAL REPORT 2014/2015 81 Corporate Liquidity & Financial Resources
The Manager adopts a disciplined capital management This provides Unitholders with the opportunity to increase their approach to maintain a healthy balance sheet and a diversified investment in MLT in a cost effective manner while enabling base of funding sources. On an ongoing basis, besides working MLT to raise additional capital to fund investments and/or to achieve a balanced debt maturity profile and to minimise general corporate needs. Approximately S$27.5 million of cash the cost of funding, the Manager also actively manages the was retained via the DRP with 24.4 million units issued during exposure to interest rate and foreign exchange fluctuations. the year. The DRP proceeds were deployed towards funding MLT’s capital expenditure requirements. Funding and Liquidity Position During the year, the Manager procured loans and issued The Manager actively manages MLT’s capital structure to medium term notes of approximately S$336.4 million with address refinancing requirements and to ensure flexibility for tenures of 3 to 8 years to finance acquisitions and for funding investment opportunities, capital expenditure and refinancing purposes. This enabled MLT to achieve a well working capital requirements. staggered debt maturity profile with weighted average debt maturity of approximately 3.6 years as at 31 March 2015. MLT’s debt portfolio is diversified by source and maturity. As at 31 March 2015, MLT had in place S$2.1 billion in debt About S$90 million loans due in FY15/16 were refinanced ahead facilities from 16 banks, of which S$683.7 million were of their maturity during this year. Consequently, total debt due unutilised. In addition, under MLT’s existing S$1.0 billion Medium in the coming financial year had been reduced to approximately Term Notes (“MTN”) Programme, approximately S$262.9 million S$56.7 million or about 3% of total debt. Based on available had been issued as at financial year end, leaving S$737.1 million cash and committed credit facilities on hand, MLT has more available for future issuance. than sufficient liquidity to meet the maturing debt obligations. As part of its prudent capital management strategy, the Manager In FY14/15, the Manager continued to implement the Distribution continues to actively explore refinancing plans for loans ahead of Reinvestment Plan (“DRP”) whereby Unitholders are given the their maturities, to extend the debt maturity profile and mitigate option of receiving their distributions in units and/or cash. refinancing risks.
Financial Resources and Liquidity (S$ million) As at 31 March 2015 Undrawn banking facilities 683.7 Issue capacity under MTN Programme 737.1 Cash 106.9 Total 1,527.7
Debt Maturity Profile (% of Total Debt) (As at 31 March 2015) 350 As at 31 March 2015
20% Total Group Borrowings S$1,631.9 million 300 20% 20% Average Duration 3.6 years
250 15% 200 S$ million 150
100 7% 6% 6% 50 3% 3%
FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24
82 BUILDING TODAY, FOR TOMORROW As at 31 March 2015 As at 31 March 2014 Leverage ratio Total Group borrowings (S$ million) 1,631.9 1,455.4 Total Group deferred consideration (S$ million) 8.3 7.3 Total Group assets (S$ million) 4,787.7 4,397.0 Aggregate Leverage 34.3% 33.3% FY14/15 FY13/14 Eff ective interest rate for the fi nancial year 2.1% 1.9% Interest service ratio Earnings before interest, tax, depreciation and amortisation (S$ million) 237.9 241.2 Interest expenses (S$ million) 31.6 27.7 Interest cover ratio (times) 7.5 8.7
Borrowings and Aggregate Leverage Hedging Profi le Total debt outstanding increased by S$176.5 million to The Manager continues to implement measures to mitigate the S$1,631.9 million as at 31 March 2015 due to additional debt impact of foreign exchange and interest rate fl uctuations on taken to fund acquisitions and capital expenditure. The distributable income. As of 31 March 2015, about 80% of MLT’s increase in debt is less than the S$271.1 million additional income stream for FY15/16 had been hedged into or will be investments in acquisitions and capital expenditure incurred derived in Singapore Dollar, of which 93% of the income stream during the year, partly due to lower translated Japanese Yen from Japan had been hedged. About 80% of MLT’s debts were borrowings, off set by higher translated Hong Kong Dollar hedged into fi xed rates through interest rate swaps or drawn borrowings. Additionally, the investments were partially funded on fi xed rate basis as at 31 March 2015, an increase from 75% a by proceeds from DRP and working capital. year ago.
The aggregate leverage stood at 34.3% as at 31 March 2015, Where feasible, after taking into account cost, tax and other well within the cap of 60% stipulated in the Monetary Authority considerations, the Manager will borrow in the same currency of Singapore’s Property Funds Guidelines for rated REITs. as the underlying assets to provide some natural hedge, or hedge through cross currency swaps for its overseas The weighted average interest rate increased to 2.1% per investments. As at 31 March 2015, about 55% of MLT’s loans annum in FY14/15, from 1.9% in the previous year, mainly due were denominated in Japanese Yen, 39% in other foreign to higher interest rates incurred for the additional borrowings currencies such as Hong Kong Dollar, Korean Won, US Dollar, taken to fund overseas acquisitions completed during the year. Malaysian Ringgit and Chinese Renminbi, and the balance 6% The interest cover ratio for FY14/15 was 7.5 times. in Singapore Dollar.
All borrowings continue to be unsecured with minimal fi nancial covenants. MLT’s issuer rating by Moody’s Investor Service stands at ‘Baa1’ with stable outlook.
Interest Rate Hedging Profi le Debt Profi le (Currency Breakdown) (As at 31 March 2015) (As at 31 March 2015)
Hedged/Fixed Rate 80% JPY 55% Unhedged 20% HKD 15% • JPY 13% KRW 8% • USD 2% RMB 8% • MYR 2% SGD 6% MYR 5% • SGD 2% USD 3% • RMB 1%
ANNUAL REPORT 2014/2015 83 Investor Relations
MLT’s 5th Annual General Meeting
The Manager is committed to engaging and developing Unitholders the opportunity to interact with the Board and senior long-term relationships with the various key stakeholders management, and to have their issues of concern addressed. through equitable, timely and transparent communications. To this end, the Manager has a dedicated investor relations During the year, the Manager continued to actively engage team who works closely with senior management to execute existing and potential institutional investors through this engagement programme. one-on-one meetings, conference calls and overseas roadshows. In addition, local and overseas property site visits Timely and Transparent Disclosures were conducted for investors to enable them to gain a better appreciation of MLT’s business and its logistics facilities. In keeping with the best corporate governance practices, MLT attracts active research coverage from sell-side analysts all announcements and press releases on MLT’s latest corporate and is currently covered by 16 local and foreign research houses. developments are filed promptly with the Singapore Exchange Securities Trading Limited. These disclosures are posted on Stakeholders and the general public are able to contact the MLT’s website on the same day of release, and disseminated investor relations team through phone, email or the online via email to the local and international media, the investment query form on MLT’s website. These have proven to be useful community, and MLT’s email alert subscribers to ensure that all communication channels for the various stakeholders, key stakeholders have timely and equal access to the latest including Unitholders, investors, potential tenants and business updates. Other information, such as MLT’s annual reports, partners, to make enquiries or provide feedback. distribution history and asset portfolio details, are also readily available on the corporate website and updated regularly. In recognition of the Manager’s investor relations efforts, MLT was awarded Silver for Best Investor Relations in the Active Stakeholder Outreach REITS & Business Trusts category at the Singapore Corporate Awards in July 2014. The Manager will continue to uphold a With the aim of keeping stakeholders updated on MLT’s high standard of corporate governance and disclosure in its strategies, business operations and market environment, outreach to the investing community. The investor relations team the Manager actively reaches out to them through will also continue to actively engage investors and other key various platforms. stakeholders to ensure that they remain well informed of MLT’s latest developments. Analyst briefings are conducted by senior management after the release of MLT’s financial results every quarter. In addition, ‘live’ audio webcasts of MLT’s half-year and full-year results Unit Price Performance briefings are streamed online to expand the reach of the The FTSE Straits Times REIT Index (“FSTREI”) rose 12% in the event and to enable participation from the online audience 12-month period to 31 March 2015, buoyed by strong interest where queries submitted over the Internet can be addressed from yield-seeking investors. In comparison, the benchmark on-the-spot by management. The audio webcasts are archived Straits Times Index (“STI”) rose 8% over the same period. for a period of six months after the event and accessible via the corporate website. MLT’s unit price outperformed both the FSTREI and STI, increasing by 19% to close at S$1.245 on 31 March 2015. With a distribution At MLT’s fifth Annual General Meeting (“AGM”) held in July 2014, payout of 7.50 cents, this translates to a distribution yield of senior management updated Unitholders on MLT’s operating 6.0%, 370 basis points above the 10-year government bond and financial performance, strategic directions and outlook. yield of 2.3%. Well attended by close to 200 retail investors, the AGM provided
84 BUILDING TODAY, FOR TOMORROW Comparative Price Performance 1 April 2014 to 31 March 2015
MLT Straits Times Index (“STI”) FTSE Straits Times REIT Index (“FSTREI”) 125
120 MLT +19%
115 FSTREI +12% 110
105 STI +8% 100
95 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Rebasing closing price on 31 March 2014 to 100
MLT’s Total Returns1
Period Capital Appreciation (%) Distribution Yield (%) Total Return (%) Since listing on 28 July 2005 to 31 March 2015 83 92 1752 From 31 March 2014 to 31 March 2015 19 7 263
1 Sum of distribution yield and capital appreciation. 2 Based on MLT’s IPO issue price of S$0.68. 3 Based on closing price of S$1.045 on 31 March 2014.
Comparative Yields
6.0% 370 bps yield spread 5.3% over 10-year Singapore Government Bond yield
3.2% 2.5% 2.3% 1.8%
0.3% MLT Yield1 10-year Govt 5-year Govt FSTREI Yield3 STI Yield4 CPF Ordinary 12-month S$ Bond Yield2 Bond Yield2 Account5 Fixed Deposit6
1 Based on actual DPU of 7.50 cents for the period 1 April 2014 to 31 March 2015 and closing unit price of S$1.245 on 31 March 2015. 2 Singapore Government Bond Yield as at 31 March 2015, Bloomberg. 3 12-month gross dividend yield of FTSE Straits Times REIT Index as at 31 March 2015, Bloomberg. 4 12-month gross dividend yield of Straits Times Index as at 31 March 2015, Bloomberg. 5 Prevailing interest rate on CPF Ordinary Account Savings. 6 12-month S$ fixed deposit savings rate as at 31 March 2015. ANNUAL REPORT 2014/2015 85 Investor Relations
MLT Unit Price and Trading Volume
Unit Price FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY11/12 FY12/13 FY13/14 FY14/15 Performance (S$) Opening 0.885 0.960 1.220 1.090 0.355 0.785 0.960 0.945 1.210 1.040 Closing 0.955 1.190 1.090 0.350 0.785 0.965 0.945 1.215 1.045 1.245 Highest 1.120 1.190 1.480 1.090 0.785 0.965 0.995 1.240 1.350 1.250 Lowest 0.885 0.860 1.050 0.310 0.325 0.760 0.800 0.935 0.990 1.040 Trading Volume (million units) 672.0 572.8 1,006.0 721.2 561.2 745.1 678.0 1,015.1 980.5 820.1
Financial Calendar
Event/Activity FY14/15 FY15/16 (Tentative) 1Q results announcement 21 July 2014 July 2015 1Q distribution to Unitholders 29 August 2014 August 2015 2Q results announcement 20 October 2014 October 2015 2Q distribution to Unitholders 28 November 2014 November 2015 3Q results announcement 19 January 2015 January 2016 3Q distribution to Unitholders 27 February 2015 February 2016 4Q results announcement 20 April 2015 April 2016 4Q distribution to Unitholders 29 May 2015 May 2016
Unitholders Enquiries For enquiries on MLT, please contact:
The Manager Unit Registrar Unitholder Depository Ms Lum Yuen May Boardroom Corporate & Advisory For depository-related matters, Investor Relations Services Pte. Ltd. please contact: T: (65) 6377 6111 50 Raffles Place The Central Depository (Pte) Limited F: (65) 6273 2007 #32-01 Singapore Land Tower 11 North Buona Vista Drive E: [email protected] Singapore 048623 #06-07 The Metropolis Tower 2 E: [email protected] T: (65) 6536 5355 Singapore 138589 W: www.mapletreelogisticstrust.com F: (65) 6438 8710 T: (65) 6236 8888 F: (65) 6535 6994 Substantial Unitholders Enquiries: W: www.sgx.com/cdp E: [email protected]
86 BUILDING TODAY, FOR TOMORROW Corporate Social Responsibility
At MLT, the Manager strives to incorporate responsible and sustainable practices in its business operations. Its commitment to the environment, local communities and stakeholders, is intrinsically aligned with its vision to be the logistics real estate partner of choice in Asia. Being part of the Mapletree group, the Manager also actively participates in many of the Sponsor’s group-wide corporate social responsibility (“CSR”) initiatives.
Environmental Responsibility In its efforts to stay relevant to the changing requirements of its tenants, the Manager actively engages existing and The Manager is committed to protecting the environment potential tenants through participation in industry conferences, through various initiatives, including the development of networking sessions and meetings. These provide a platform environmentally sustainable buildings, implementation for management to gather feedback and better understand the of energy-efficient measures at its properties and other needs and concerns of its tenants. green initiatives. The four Mapletree-sponsored real estate investment trusts Following the completion of MLT’s first Green Mark Platinum (“REITs”), including MLT, are amongst the founding members certified warehouse in Singapore – Mapletree Benoi Logistics of the REIT Association of Singapore (REITAS). Newly launched Hub, the Manager commenced the redevelopment of in November 2014, REITAS is established to promote the 5B Toh Guan Road East in April 2014. In line with its commitment growth and development of the Singapore REITs industry. towards sustainable developments, the Manager is targeting The Manager’s Non-Executive Director, Mr Chua Tiow Chye, to achieve Green Mark certification for the new development. is the President of REITAS. In the coming year, the Manager Green building practices have been adopted in the construction hopes to play its part in promoting the REIT industry through its of the new facility while eco-friendly features that increase participation in the programmes and initiatives spearheaded by resource efficiency will be incorporated in the building REITAS. design specifications. The Manager is also committed to delivering timely, transparent During the year, the Manager completed Phase 2 of the solar and consistent disclosures to the media and investment panel installation project in Japan to harness renewable energy community. For more details on the Manager’s investor relations and reduce energy consumption. Including Phase 1 which initiatives, please refer to the Investor Relations section on was completed in FY13/14, this asset enhancement initiative pages 84 to 86. has been implemented at a total of nine properties in Japan, generating 7,100 megawatts of renewable energy per annum. The Manager and Sponsor actively encourage staff to This initiative not only contributes to a greener environment, give back to society, especially the less privileged and but has also added a new income stream for the Trust. disadvantaged in their communities. At an internal fundraiser held in October 2014 at Mapletree’s corporate headquarters in With the aim of reducing energy and water consumption, Singapore, over 20 Mapletree employee volunteers prepared the Manager continues to implement a phased programme to home-cooked meals, desserts and other baked items for sale. install eco-friendly building fittings across the portfolio’s The event raised S$25,000 for HealthServe, a charity that 117 properties. Examples of such fittings include water-efficient offers medical aid and counselling to migrant workers and the washroom fittings and energy-saving lightings with motion disadvantaged. sensors, and energy-efficient lifts. The Mapletree Staff CSR programme was launched in June The Manager continues to support the Sponsor’s group-wide 2014, where three groups of staff volunteers were awarded ‘Mapletree Goes Green’ initiative, where employees are seed funding of S$5,000 each to implement their CSR ideas. encouraged to adopt green work practices and make sustainable Two of the three ideas involved the distribution of basic choices. For instance, staff are encouraged to use refillable water necessities by Singapore-based Mapletree volunteers to bottles and eco-friendly bags instead of disposable ones, and underprivileged families, specifically those residing in the recycling bins for paper, plastic and electronic waste are provided Tanjong Pagar and Jalan Kukoh areas. The third CSR idea in the office premises to help promote a recycling culture. For the saw a team of China-based Mapletree volunteers organising a production of this Annual Report, the Manager has opted to use Christmas party at VivoCity Nanhai for the children of Rainbow paper that is certified by the Forest Stewardship Council – School in December. Rainbow School provides education for an organisation that promotes responsible forestry. children with special needs in the district of Nanhai in Foshan, Guangdong. Community Engagement The Sponsor made other CSR commitments both locally The Manager undertakes various programmes and activities to and overseas. Mapletree has contributed S$2.5 million to reach out to and enhance its relationships with the communities the endowment funds of Singapore’s five public universities, in which it operates. ANNUAL REPORT 2014/2015 87 Corporate Social Responsibility
benefitting over 30 students from financially disadvantaged leadership programmes, which are continually reviewed and backgrounds every year and in perpetuity. Overseas, Mapletree enhanced to remain relevant to business needs. In addition, committed RMB250,000 to post-disaster reconstruction the Sponsor partners a diverse pool of external training efforts in China. The funds will go towards social development providers to design customised courses that cater to the projects and to Ludian County, the epicentre of the earthquake specific needs of its employees and the business. that struck Yunnan province in August 2014. The Group also continued to support low-income residents living in the districts To promote a high-performing workforce within the of Minhang (Shanghai) and Nanhai (Foshan, Guangdong) organisation, the Manager implements a performance-based during the year. For its contributions, Mapletree received the system that provides competitive compensation and benefits. ‘Best Corporate Social Responsibility Award’ from the Minhang Employees are rewarded based on their performance and district government in 2014. contribution, and incentives include annual bonus plans that are linked to financial and nonfinancial performance targets. Employee Development and Engagement A performance management system is also in place, where employees and their managers jointly set performance The Manager recognises that employees are vital to the targets and identify employees’ development needs. long-term growth and success of MLT. As MLT expands its presence across the region, it is important that the Manager In FY14/15, the Sponsor conducted its second employee continues to attract and retain talents who are committed to engagement survey (“ESS”), which included participation from the goals of the organisation. To develop a motivated and the Manager’s staff. The second EES saw a higher participation competent workforce, the Manager leverages on the Sponsor’s rate and improvement in the ratings for many categories such initiatives for talent attraction and development, performance as communication, immediate supervision, decision making management and employee welfare, to build and strengthen and teamwork, as compared to the first ESS conducted in 2011. its human capital. The Manager is now focused on executing plans to improve areas identified in the second ESS exercise, such as operating The Sponsor attracts young talents through two programmes - efficiency and training. the Mapletree Associate Programme (“MAP”) and the Mapletree Executive Programme (“MEP”), which target candidates at The Sponsor has various group-wide initiatives to encourage different career stages. In the MAP, fresh graduates are taken employees to stay healthy and maintain a work-life balance. through 12 months of intensive on-the-job training, while the The Mapletree Recreation Club organises a variety of activities MEP is catered to postgraduate degree holders who have some including health screenings, wellness-related talks, workshops work experience. Through a 24-month programme that includes on nutrition and weight management, and pro-family events two job rotations to different business units and functions, such as movie nights. talents in MEP will gain invaluable insight and exposure to the demands of the diverse positions available within Mapletree. Staying Committed In FY14/15, the Manager welcomed two employees from the MEP who were deployed to the investment and asset As a responsible corporate citizen, the Manager recognises management functions in MLT. the positive impact of sustainable business practices on the environment and its communities. The Manager, as part of the The Manager is committed to developing its employees which Mapletree group, looks forward to further strengthening its CSR includes strengthening technical competencies and building efforts and engagement with key stakeholders in the coming leadership skills at every level. Employees who possess year, and will continue to review its strategy and resources to managerial calibre are selected for the Sponsor’s flagship ensure that the concerns of its stakeholders are addressed.
Mapletree staff training programme in Singapore Staff volunteers organised a Christmas party at VivoCity Nanhai for children from Rainbow School
88 BUILDING TODAY, FOR TOMORROW 2C Printing (Black & Pantone 718 U)
Table of Contents
90 Report of the Trustee 91 Statement by the Manager 92 Independent Auditor’s Report 93 Statements of Total Return 94 Statements of Financial Position 95 Distribution Statements 96 Consolidated Statements of Cash Flows 97 Statements of Movements in Unitholders’ Funds 98 Portfolio Statements 124 Notes to the Financial Statements 169 Statistics of Unitholdings 171 Interested Person Transactions 172 Notice of Annual General Meeting Proxy Form Report of the Trustee For the financial year ended 31 March 2015
HSBC Institutional Trust Services (Singapore) Limited (the “Trustee”) is under a duty to take into custody and hold the assets of Mapletree Logistics Trust (the “Trust”) and its subsidiaries (the “Group”) in trust for the holders (“Unitholders”) of units in the Trust (the “Units”). In accordance with the Securities and Futures Act, Chapter 289, of Singapore, its subsidiary legislation and the Code on Collective Investment Schemes (“CIS”), the Trustee shall monitor the activities of Mapletree Logistics Trust Management Ltd. (the “Manager”) for compliance with the limitations imposed on the investment and borrowing powers as set out in the trust deed dated 5 July 2004 (as amended) (the “Trust Deed”) between the Manager and the Trustee in each annual accounting period and report thereon to Unitholders in an annual report.
To the best knowledge of the Trustee, the Manager has, in all material respects, managed the Trust during the period covered by these financial statements, set out on pages 93 to 168 in accordance with the limitations imposed on the investment and borrowing powers set out in the Trust Deed.
For and on behalf of the Trustee, HSBC Institutional Trust Services (Singapore) Limited
Esther Fong Su Ching Head of Trustee Services
Singapore 18 May 2015
90 BUILDING TODAY, FOR TOMORROW Statement by the Manager For the financial year ended 31 March 2015
In the opinion of the directors of Mapletree Logistics Trust Management Ltd., the accompanying financial statements of Mapletree Logistics Trust (“MLT”) and its subsidiaries (the “Group”) as set out on pages 93 to 168 comprising the Statements of Financial Position and Portfolio Statements of MLT and the Group as at 31 March 2015, the Statements of Total Return, Distribution Statements and Statements of Movements in Unitholders’ Funds of MLT and the Group, the Consolidated Statement of Cash Flows of the Group and Notes to the Financial Statements for the financial year ended 31 March 2015 are drawn up so as to present fairly, in all material respects, the financial position of MLT and of the Group as at 31 March 2015 and the total return, amount distributable and movements in Unitholders’ funds of MLT and of the Group and consolidated cash flows of the Group for the financial year ended 31 March 2015 in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants. At the date of this statement, there are reasonable grounds to believe that MLT and the Group will be able to meet its financial obligations as and when they materialise.
For and on behalf of the Manager, Mapletree Logistics Trust Management Ltd.
Ng Kiat Director
Singapore 18 May 2015
ANNUAL REPORT 2014/2015 91 Independent Auditor’s Report TO THE UNITHOLDERS OF MAPLETREE LOGISTICS TRUST (Constituted under a Trust Deed in the Republic of Singapore)
Report on the Financial Statements
We have audited the accompanying financial statements of Mapletree Logistics Trust (“MLT”) and its subsidiaries (the “Group”) as set out on pages 93 to 168, which comprise the Statements of Financial Position and Portfolio Statements of MLT and the Group as at 31 March 2015, the Statements of Total Return, Distribution Statements and Statements of Movements in Unitholders’ Funds of MLT and the Group and the Consolidated Statement of Cash Flows of the Group for the financial year ended 31 March 2015, and a summary of significant accounting policies and other explanatory information.
Manager’s Responsibility for the Financial Statements
The Manager of MLT (the “Manager”) is responsible for the preparation and fair presentation of these financial statements in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants and for such internal control as the Manager determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements; whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of MLT and of the Group as at 31 March 2015, the total return, amount distributable and movements in Unitholders’ funds of MLT and the Group and consolidated cash flows of the Group for the financial year ended 31 March 2015 in accordance with the recommendations of Statement of Recommended Accounting Practice 7 “Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants.
PricewaterhouseCoopers LLP Public Accountants and Chartered Accountants
Singapore 18 May 2015
92 BUILDING TODAY, FOR TOMORROW Statements of Total Return For the financial year ended 31 March 2015
Group MLT 2015 2014 2015 2014 Note S$’000 S$’000 S$’000 S$’000
Gross revenue 3 330,114 310,709 150,826 142,820 Property expenses 4 (52,669) (43,074) (32,092) (24,760) Net property income 277,445 267,635 118,734 118,060
Interest income 3 855 629 11,284 9,421 Dividend income 3 - - 52,102 47,034 Manager’s management fees 5 (32,693) (30,775) (13,328) (12,541) Trustee’s fees (648) (616) (648) (616) Other trust income 6 9,060 13,203 28,438 8,761 Borrowing costs 7 (33,167) (29,354) (13,117) (11,018) Net investment income 220,852 220,722 183,465 159,101 Net change in fair value of financial derivatives (15,394) 3,150 (6,653) 3,050 Amortisation of fair value of financial guarantees - - 3,444 4,510 Net income 205,458 223,872 180,256 166,661 Net movement in the value of investment properties 13 83,976 105,305 (68,529) 70,065 Total return for the year before income tax 289,434 329,177 111,727 236,726 Income tax 8 (29,138) (17,025) - - Total return for the year 260,296 312,152 111,727 236,726
Total return attributable to: Unitholders of MLT 240,979 292,692 92,914 217,913 Perpetual securities holders 18,813 18,813 18,813 18,813 Non-controlling interests 504 647 - - 260,296 312,152 111,727 236,726
Earnings per unit (cents) 9 - Basic 9.79 12.00
- Diluted 9.79 12.00
The accompanying notes form an integral part of these financial statements.
ANNUAL REPORT 2014/2015 93 Statements of Financial Position As at 31 March 2015
Group MLT 2015 2014 2015 2014 Note S$’000 S$’000 S$’000 S$’000
ASSETS Current assets Cash and cash equivalents 10 106,860 114,278 13,852 11,261 Trade and other receivables 11 20,532 16,143 130,043 123,107 Other current assets 12 11,017 12,064 1,081 1,172 Derivative financial instruments 18 18,076 19,381 14,761 16,927 156,485 161,866 159,737 152,467
Non-current assets Investment properties 13 4,631,216 4,235,119 1,750,640 1,754,400 Investments in subsidiaries 14 - - 205,241 196,092 Loans to subsidiaries 15 - - 876,723 749,608 4,631,216 4,235,119 2,832,604 2,700,100
Total assets 4,787,701 4,396,985 2,992,341 2,852,567
LIABILITIES Current liabilities Trade and other payables 16 164,082 139,557 92,797 75,980 Financial guarantee contracts - - 10,326 13,771 Borrowings 17 56,680 148,712 - - Current income tax liabilities 3,645 3,887 - - Derivative financial instruments 18 20,132 7,427 5,185 699 244,539 299,583 108,308 90,450
Non-current liabilities Trade and other payables 16 2,500 2,500 2,500 2,500 Borrowings 17 1,575,198 1,306,665 624,503 438,339 Deferred taxation 19 77,139 56,054 - - 1,654,837 1,365,219 627,003 440,839
Total liabilities 1,899,376 1,664,802 735,311 531,289
Net assets 2,888,325 2,732,183 2,257,030 2,321,278
Represented by: Unitholders’ funds 20 2,538,273 2,381,864 1,913,020 1,977,268 Perpetual securities holders 20 344,010 344,010 344,010 344,010 Non-controlling interest 6,042 6,309 - - 2,888,325 2,732,183 2,257,030 2,321,278
Units in issue (’000) 20 2,474,102 2,448,706 2,474,102 2,448,706
Net asset value per unit (S$) 1.03 0.97 0.77 0.81
The accompanying notes form an integral part of these financial statements.
94 BUILDING TODAY, FOR TOMORROW Distribution Statements For the financial year ended 31 March 2015
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Total return for the year attributable to Unitholders 240,979 292,692 92,914 217,913
Adjustment for net effect of non-tax deductible/(chargeable) items and other adjustments (Note A) (56,070) (112,960) 91,995 (38,181) Amount available for distribution 184,909 179,732 184,909 179,732 Amount available for distribution to Unitholders at beginning of the year 46,626 42,192 46,626 42,192 231,535 221,924 231,535 221,924
Distribution to Unitholders: Distribution of 1.89 cents per unit for the period from 1 January 2014 to 31 March 2014 (46,280) - (46,280) - Distribution of 1.90 cents per unit for the period from 1 April 2014 to 30 June 2014 (46,679) - (46,679) - Distribution of 1.88 cents per unit for the period from 1 July 2014 to 30 September 2014 (46,292) - (46,292) - Distribution of 1.87 cents per unit for the period from 1 October 2014 to 31 December 2014 (46,162) - (46,162) - Distribution of 1.73 cents per unit for the period from 1 January 2013 to 31 March 2013 - (42,074) - (42,074) Distribution of 1.80 cents per unit for the period from 1 April 2013 to 30 June 2013 - (43,849) - (43,849) Distribution of 1.82 cents per unit for the period from 1 July 2013 to 30 September 2013 - (44,395) - (44,395) Distribution of 1.84 cents per unit for the period from 1 October 2013 to 31 December 2013 - (44,980) - (44,980)
Total Unitholders’ distribution (including capital return) (Note B) (185,413) (175,298) (185,413) (175,298)
Amount available for distribution to Unitholders at end of the year 46,122 46,626 46,122 46,626
Note A: Adjustment for net effect of non-tax deductible/(chargeable) items and other adjustments comprise: Major non-tax deductible/(chargeable) items: - Trustee’s fees 648 616 648 616 - Net change in fair value of financial derivatives 15,394 (3,150) 6,653 (3,050) - Financing fees 830 1,028 830 1,028 - Net fair value gain on investment properties net of deferred tax impact (67,389) (101,350) 68,529 (70,065) - exchange differences on capital items/unrealised exchange differences (7,365) (8,723) (29,489) (8,934) - Amortisation of fair value of financial guarantees - - (3,443) (4,510) Net overseas income distributed back to MLT in the form of capital returns - - 45,592 44,224 Other gains 2,480 2,480 2,480 2,480 Other non-tax deductible items and other adjustments (668) (3,861) 195 30 (56,070) (112,960) 91,995 (38,181)
Note B: Total Unitholders’ distribution: - From other gains 2,458 1,830 2,458 1,830 - From operations 155,834 150,206 155,834 150,206 - From Unitholders’ contribution 27,121 23,262 27,121 23,262 185,413 175,298 185,413 175,298
The accompanying notes form an integral part of these financial statements.
ANNUAL REPORT 2014/2015 95 Consolidated Statements of Cash Flows For the financial year ended 31 March 2015
2015 2014 Note S$’000 S$’000
Operating activities Total return for the year 260,296 312,152 Adjustments for: - Income tax 8 29,138 17,025 - Interest income 3 (855) (629) - Interest expense 7 31,573 27,721 - Amortisation 1,013 1,187 - Net movement in the value of investment properties 13 (83,976) (105,305) - Unrealised translation gains (3,929) (5,138) - Net change in fair value of financial derivatives 15,394 (3,150) Operating income before working capital changes 248,654 243,863
Changes in working capital: - Trade and other receivables (2,978) (5,238) - Trade and other payables 2,143 (19,648) Cash generated from operations 247,819 218,977 Tax paid (11,608) (8,822) Cash flows from operating activities 236,211 210,155
Investing activities Interest received 816 713 Net cash outflow on purchase of and additions to investment properties including payment of deferred considerations (180,709) (116,490) Purchase of investment properties through purchase of subsidiaries, net of cash acquired (66,601) - Proceeds from divestment of investment properties - 15,500 Cash flows used in investing activities (246,494) (100,277)
Financing activities Contribution from non-controlling interests 66 174 Proceeds from borrowings 456,857 169,894 Repayment of borrowings (250,106) (96,172) Distribution to Unitholders (net of distribution in units) (157,162) (157,173) Distribution to perpetual securities holders (18,813) (18,813) Distribution to non-controlling interests (860) (731) Interest paid (29,898) (27,192) Cash flows from/(used in) financing activities 84 (130,013)
Net decrease in cash and cash equivalents (10,199) (20,135) Cash and cash equivalents at beginning of the year 114,278 134,814 Effect of exchange rate changes on balances held in foreign currencies 2,781 (401) Cash and cash equivalents at end of the year 10 106,860 114,278
The accompanying notes form an integral part of these financial statements.
96 BUILDING TODAY, FOR TOMORROW Statements of Movements in Unitholders’ Funds For the financial year ended 31 March 2015
Group MLT 2015 2014 2015 2014 Note S$’000 S$’000 S$’000 S$’000
Operations Beginning of the year 708,181 567,525 242,401 176,524 Total return attributable to Unitholders of MLT 240,979 292,692 92,914 217,913 Distributions (158,292) (152,036) (158,292) (152,036) End of the year 790,868 708,181 177,023 242,401
Unitholders’ Contribution Beginning of the year 1,734,867 1,740,004 1,734,867 1,740,004 Creation of new units arising from: - Distribution Reinvestment Plan 27,547 18,449 27,547 18,449 - Settlement of acquisition fees 1,178 - 1,178 - Issue expenses 21 (474) (324) (474) (324) Distributions (27,121) (23,262) (27,121) (23,262) End of the year 1,735,997 1,734,867 1,735,997 1,734,867
Perpetual Securities Beginning of the year 344,010 344,010 344,010 344,010 Total return attributable to perpetual securities holders 18,813 18,813 18,813 18,813 Distributions (18,813) (18,813) (18,813) (18,813) End of the year 344,010 344,010 344,010 344,010
Hedging reserves Beginning of the year - - - - Movements in hedging reserves (664) - - - End of the year (664) - - -
Foreign Currency Translation Reserve Beginning of the year (61,184) (75,500) - - Translation differences relating to financial statements of foreign subsidiaries and quasi equity loans 73,256 14,316 - - End of the year 12,072 (61,184) - -
Total Unitholders’ funds at end of the year 2,882,283 2,725,874 2,257,030 2,321,278
Non-Controlling Interests Beginning of the year 6,309 6,214 - - Contribution from non-controlling interests 66 174 - - Total return attributable to non-controlling interests 504 647 - - Distribution to non-controlling interests (including capital returns) (860) (726) - - Currency translation movement 23 - - - End of the year 6,042 6,309 - -
Total 2,888,325 2,732,183 2,257,030 2,321,278
The accompanying notes form an integral part of these financial statements.
ANNUAL REPORT 2014/2015 97 Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease* lease* Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Singapore
TIC Tech Centre 28/07/2004 30+30 years 41 years 25 Pandan Crescent 3,730 8,548 55.0 100 31/03/2015 (a) 63,300 74,400 2.5 3.1 19 Senoko Loop 06/12/2004 30+30 years 39 years 19 Senoko Loop 2,136 2,131 75.0 100 31/03/2015 (a) 18,500 23,100 0.7 1.0 Expeditors 03/01/2005 30 years 19 years 61 Alps Avenue 2,428 2,268 100 100 31/03/2015 (a) 20,250 21,000 0.8 0.9 Allied Telesis 03/01/2005 30+30 years 49 years 11 Tai Seng Link 1,993 1,944 100 100 31/03/2015 (a) 18,000 20,000 0.7 0.8 Mapletree Benoi Logistics Hub 17/05/2005 30 years 25 years 21 Benoi Sector 16,306 2,366 100 100 31/03/2015 (a) 149,000 148,500 5.9 6.2 37 Penjuru Lane 17/05/2005 30 years 11 years 37 Penjuru Lane 1,747 1,809 88.0 86.0 31/03/2015 (a) 9,650 10,000 0.4 0.4 6 Changi South Lane 07/06/2005 30+30 years 40 years 6 Changi South Lane 2,278 2,009 100 100 31/03/2015 (a) 21,800 21,800 0.9 0.9 Armstrong 13/06/2005 30+30 years 41 years 531 Bukit Batok Street 23 2,112 2,070 100 100 31/03/2015 (a) 24,000 28,000 0.9 1.2 70 Alps Avenue 16/06/2005 30 years 18 years 70 Alps Avenue 5,234 4,809 100 100 31/03/2015 (a) 33,700 35,000 1.3 1.5 Menlo (Alps) 16/06/2005 29/30 years (g) 17 years 60 Alps Avenue 1,785 1,668 100 100 31/03/2015 (a) 19,000 21,000 0.7 0.9 Ban Teck Han 20/06/2005 30+30 years 41 years 21 Serangoon North Avenue 5 1,864 1,836 100 100 31/03/2015 (a) 24,900 25,600 1.0 1.1 5B Toh Guan Road East 22/06/2005 30+30 years 36 years 5B Toh Guan Road East 428 3,124 N/A N/A 31/03/2015 (a) 52,700 35,000 2.1 1.5 50 Airport Boulevard 28/07/2005 60 years 25 years 50 Airport Boulevard 1,707 1,690 100 100 31/03/2015 (a) 23,700 23,500 0.9 1.0 Prima 28/07/2005 99 years 82 years 201 Keppel Road 1,924 1,851 100 100 31/03/2015 (a) 41,800 41,700 1.6 1.8 Pulau Sebarok 28/07/2005 73 years 56 years Pulau Sebarok 7,452 7,237 100 100 31/03/2015 (a) 111,000 110,000 4.4 4.6 Kenyon 28/11/2005 30+23 years 38 years 8 Loyang Crescent 1,630 1,530 100 100 31/03/2015 (a) 22,300 21,500 0.9 0.9 Toppan 01/12/2005 28+30 years/ 35 years 97 Ubi Avenue 4 1,655 1,631 100 100 31/03/2015 (a) 18,600 18,400 0.7 0.8 30+30 years (h) 39 Changi South Avenue 2 01/12/2005 30+30 years 40 years 39 Changi South Avenue 2 1,127 827 100 73.0 31/03/2015 (a) 11,900 11,000 0.5 0.5 2 Serangoon North Avenue 5 07/02/2006 30+30 years 41 years 2 Serangoon North Avenue 5 5,455 5,774 94.0 82.0 31/03/2015 (a) 54,710 57,500 2.2 2.4 10 Changi South Street 3 10/02/2006 30+30 years 40 years 10 Changi South Street 3 1,935 1,441 91.0 91.0 31/03/2015 (a) 18,000 19,000 0.7 0.8 Popular 06/03/2006 30+30 years 42 years 20 Old Toh Tuck Road 1,138 1,115 100 100 31/03/2015 (a) 13,500 14,500 0.5 0.6 85 Defu Lane 10 07/07/2006 30+30 years 35 years 85 Defu Lane 10 1,865 1,802 92.0 100 31/03/2015 (a) 16,500 17,200 0.7 0.7 31 Penjuru Lane 18/07/2006 30+13 years 17 years 31 Penjuru Lane 1,410 1,873 38.3 100 31/03/2015 (a) 16,600 17,800 0.7 0.7 8 Changi South Lane 18/08/2006 30+30 years 42 years 8 Changi South Lane 1,357 1,694 94.0 100 31/03/2015 (a) 16,400 18,000 0.6 0.8 Markono 01/09/2006 30+30 years 42 years 4 Toh Tuck Link 1,125 1,108 100 100 31/03/2015 (a) 14,500 15,000 0.6 0.6 138 Joo Seng Road 07/09/2006 30+30 years 36 years 138 Joo Seng Road 1,808 1,828 85.0 100 31/03/2015 (a) 16,000 16,000 0.6 0.7 Kim Seng 13/09/2006 30+30 years 34 years 4 Tuas Avenue 5 1,316 1,290 100 100 31/03/2015 (a) 15,500 16,500 0.6 0.7 7 Tai Seng Drive 03/10/2006 30+30 years 38 years 7 Tai Seng Drive 3,888 3,962 83.0 98.0 31/03/2015 (a) 38,900 41,000 1.5 1.7 Jurong Logistics Hub 20/10/2006 30+30 years 46 years 31 Jurong Port Road 24,251 23,918 98.0 99.0 31/03/2015 (a) 246,500 244,500 9.7 10.3 Kingsmen Creatives 01/02/2007 30+30 years 44 years 3 Changi South Lane 1,689 1,450 100 100 31/03/2015 (a) 17,300 17,300 0.7 0.7 1 Genting Lane 08/02/2007 60 years 33 years 1 Genting Lane 1,004 1,165 100 100 31/03/2015(a) 12,830 13,000 0.5 0.5
* Refers to the tenure of underlying land. Remaining term of lease includes option to renew land leases.
The accompanying notes form an integral part of these financial statements.
98 BUILDING TODAY, FOR TOMORROW Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease* lease* Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Singapore
TIC Tech Centre 28/07/2004 30+30 years 41 years 25 Pandan Crescent 3,730 8,548 55.0 100 31/03/2015 (a) 63,300 74,400 2.5 3.1 19 Senoko Loop 06/12/2004 30+30 years 39 years 19 Senoko Loop 2,136 2,131 75.0 100 31/03/2015 (a) 18,500 23,100 0.7 1.0 Expeditors 03/01/2005 30 years 19 years 61 Alps Avenue 2,428 2,268 100 100 31/03/2015 (a) 20,250 21,000 0.8 0.9 Allied Telesis 03/01/2005 30+30 years 49 years 11 Tai Seng Link 1,993 1,944 100 100 31/03/2015 (a) 18,000 20,000 0.7 0.8 Mapletree Benoi Logistics Hub 17/05/2005 30 years 25 years 21 Benoi Sector 16,306 2,366 100 100 31/03/2015 (a) 149,000 148,500 5.9 6.2 37 Penjuru Lane 17/05/2005 30 years 11 years 37 Penjuru Lane 1,747 1,809 88.0 86.0 31/03/2015 (a) 9,650 10,000 0.4 0.4 6 Changi South Lane 07/06/2005 30+30 years 40 years 6 Changi South Lane 2,278 2,009 100 100 31/03/2015 (a) 21,800 21,800 0.9 0.9 Armstrong 13/06/2005 30+30 years 41 years 531 Bukit Batok Street 23 2,112 2,070 100 100 31/03/2015 (a) 24,000 28,000 0.9 1.2 70 Alps Avenue 16/06/2005 30 years 18 years 70 Alps Avenue 5,234 4,809 100 100 31/03/2015 (a) 33,700 35,000 1.3 1.5 Menlo (Alps) 16/06/2005 29/30 years (g) 17 years 60 Alps Avenue 1,785 1,668 100 100 31/03/2015 (a) 19,000 21,000 0.7 0.9 Ban Teck Han 20/06/2005 30+30 years 41 years 21 Serangoon North Avenue 5 1,864 1,836 100 100 31/03/2015 (a) 24,900 25,600 1.0 1.1 5B Toh Guan Road East 22/06/2005 30+30 years 36 years 5B Toh Guan Road East 428 3,124 N/A N/A 31/03/2015 (a) 52,700 35,000 2.1 1.5 50 Airport Boulevard 28/07/2005 60 years 25 years 50 Airport Boulevard 1,707 1,690 100 100 31/03/2015 (a) 23,700 23,500 0.9 1.0 Prima 28/07/2005 99 years 82 years 201 Keppel Road 1,924 1,851 100 100 31/03/2015 (a) 41,800 41,700 1.6 1.8 Pulau Sebarok 28/07/2005 73 years 56 years Pulau Sebarok 7,452 7,237 100 100 31/03/2015 (a) 111,000 110,000 4.4 4.6 Kenyon 28/11/2005 30+23 years 38 years 8 Loyang Crescent 1,630 1,530 100 100 31/03/2015 (a) 22,300 21,500 0.9 0.9 Toppan 01/12/2005 28+30 years/ 35 years 97 Ubi Avenue 4 1,655 1,631 100 100 31/03/2015 (a) 18,600 18,400 0.7 0.8 30+30 years (h) 39 Changi South Avenue 2 01/12/2005 30+30 years 40 years 39 Changi South Avenue 2 1,127 827 100 73.0 31/03/2015 (a) 11,900 11,000 0.5 0.5 2 Serangoon North Avenue 5 07/02/2006 30+30 years 41 years 2 Serangoon North Avenue 5 5,455 5,774 94.0 82.0 31/03/2015 (a) 54,710 57,500 2.2 2.4 10 Changi South Street 3 10/02/2006 30+30 years 40 years 10 Changi South Street 3 1,935 1,441 91.0 91.0 31/03/2015 (a) 18,000 19,000 0.7 0.8 Popular 06/03/2006 30+30 years 42 years 20 Old Toh Tuck Road 1,138 1,115 100 100 31/03/2015 (a) 13,500 14,500 0.5 0.6 85 Defu Lane 10 07/07/2006 30+30 years 35 years 85 Defu Lane 10 1,865 1,802 92.0 100 31/03/2015 (a) 16,500 17,200 0.7 0.7 31 Penjuru Lane 18/07/2006 30+13 years 17 years 31 Penjuru Lane 1,410 1,873 38.3 100 31/03/2015 (a) 16,600 17,800 0.7 0.7 8 Changi South Lane 18/08/2006 30+30 years 42 years 8 Changi South Lane 1,357 1,694 94.0 100 31/03/2015 (a) 16,400 18,000 0.6 0.8 Markono 01/09/2006 30+30 years 42 years 4 Toh Tuck Link 1,125 1,108 100 100 31/03/2015 (a) 14,500 15,000 0.6 0.6 138 Joo Seng Road 07/09/2006 30+30 years 36 years 138 Joo Seng Road 1,808 1,828 85.0 100 31/03/2015 (a) 16,000 16,000 0.6 0.7 Kim Seng 13/09/2006 30+30 years 34 years 4 Tuas Avenue 5 1,316 1,290 100 100 31/03/2015 (a) 15,500 16,500 0.6 0.7 7 Tai Seng Drive 03/10/2006 30+30 years 38 years 7 Tai Seng Drive 3,888 3,962 83.0 98.0 31/03/2015 (a) 38,900 41,000 1.5 1.7 Jurong Logistics Hub 20/10/2006 30+30 years 46 years 31 Jurong Port Road 24,251 23,918 98.0 99.0 31/03/2015 (a) 246,500 244,500 9.7 10.3 Kingsmen Creatives 01/02/2007 30+30 years 44 years 3 Changi South Lane 1,689 1,450 100 100 31/03/2015 (a) 17,300 17,300 0.7 0.7 1 Genting Lane 08/02/2007 60 years 33 years 1 Genting Lane 1,004 1,165 100 100 31/03/2015(a) 12,830 13,000 0.5 0.5
* Refers to the tenure of underlying land. Remaining term of lease includes option to renew land leases.
ANNUAL REPORT 2014/2015 99 Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease* lease* Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Singapore (continued)
20 Tampines Street 92 27/02/2007 30+30 years 35 years 20 Tampines Street 92 1,065 1,015 100 100 31/03/2015 (a) 12,450 13,500 0.5 0.6 521 Bukit Batok Street 23 28/02/2007 30+30 years 40 years 521 Bukit Batok Street 23 2,219 2,006 94.0 50.0 31/03/2015 (a) 25,200 26,000 1.0 1.1 6 Marsiling Lane 09/03/2007 60 years 23 years 6 Marsiling Lane 2,332 1,844 86.0 100 31/03/2015 (a) 22,100 22,100 0.9 0.9 134 Joo Seng Road 10/04/2007 30+30 years 37 years 134 Joo Seng Road 608 435 73.0 46.0 31/03/2015 (a) 9,900 10,000 0.4 0.4 Union Steel (Pioneer) 30/11/2007 30+30 years 38 years 31/33 Pioneer Road North 658 586 100 100 31/03/2015 (a) 7,600 7,300 0.3 0.3 119 Neythal Road 30/11/2007 60 years 25 years 119 Neythal Road 983 1,087 59.0 41.0 31/03/2015 (a) 15,100 16,800 0.6 0.7 30 Tuas South Avenue 8 30/11/2007 30+30 years 44 years 30 Tuas South Avenue 8 682 592 100 100 31/03/2015 (a) 7,700 7,600 0.3 0.3 Union Steel (Tuas View) 30/11/2007 60 years 41 years 8 Tuas View Square 504 477 100 100 31/03/2015 (a) 7,200 6,600 0.3 0.3 Pioneer Districentre 14/12/2007 12+12 years 21 years 10 Tuas Avenue 13 1,532 1,493 100 100 31/03/2015 (a) 16,200 17,200 0.6 0.7 76 Pioneer Road 24/04/2008 30+30 years 38 years 76 Pioneer Road 4,461 4,395 100 100 31/03/2015 (a) 52,000 56,000 2.0 2.4 3A Jalan Terusan 02/05/2008 30+12 years 22 years 3A Jalan Terusan 2,600 2,600 100 100 31/03/2015 (a) 26,000 27,800 1.0 1.2 Menlo (Boon Lay Way) 30/06/2008 30+15 years 20 years 30 Boon Lay Way 1,530 3,944 35.0 100 31/03/2015 (a) 38,800 45,000 1.5 1.9 Menlo (Benoi) 30/06/2008 20 years 15 years 22A Benoi Road 722 710 100 100 31/03/2015 (a) 6,500 6,800 0.3 0.3 SH Cogent (Penjuru Close) 15/12/2009 29 years 20 years 7 Penjuru Close 4,699 4,607 100 100 31/03/2015 (a) 54,500 55,000 2.1 2.3 CEVA (Changi South) 11/03/2010 25+30 years 39 years 15 Changi South Street 2 3,490 3,498 50.0 100 31/03/2015 (a) 42,500 47,000 1.7 2.0 Natural Cool Lifestyle Hub 18/08/2010 30+30 years 52 years 29 Tai Seng Avenue 4,773 4,682 100 100 31/03/2015 (a) 56,800 58,900 2.2 2.5 AW Centre 25/10/2010 30+30 years 42 years 73 Tuas South Avenue 1 1,584 1,560 100 100 31/03/2015 (a) 19,100 19,700 0.8 0.8 Liang Huat Building 26/11/2010 30+30 years 40 years 51 Benoi Road 4,680 4,589 100 100 31/03/2015 (a) 55,600 57,000 2.2 2.4 JEP Centre 20/12/2010 30/30 years (i) 22 years 44/46 Changi South Street 1 1,580 1,565 100 100 31/03/2015 (a) 16,600 17,500 0.7 0.7 NS Tang Building 24/12/2010 30+28 years 36 years 36 Loyang Drive 1,212 1,194 100 100 31/03/2015 (a) 16,200 14,300 0.6 0.6 Jian Huang Building 31/03/2011 30 years 22 years 15A Tuas Avenue 18 2,210 2,167 100 100 31/03/2015 (a) 24,200 25,500 1.0 1.1 190A Pandan Loop 18/11/2014 30+30 years 40 years 190A Pandan Loop 925 - 82.0 N/A 31/03/2015 (a) 37,050 - 1.5 - 30 Woodlands Loop 06/02/2007 - - 30 Woodlands Loop - 6 ------
* Refers to the tenure of underlying land. Remaining term of lease includes option to renew land leases.
The accompanying notes form an integral part of these financial statements.
100 BUILDING TODAY, FOR TOMORROW Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease* lease* Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Singapore (continued)
20 Tampines Street 92 27/02/2007 30+30 years 35 years 20 Tampines Street 92 1,065 1,015 100 100 31/03/2015 (a) 12,450 13,500 0.5 0.6 521 Bukit Batok Street 23 28/02/2007 30+30 years 40 years 521 Bukit Batok Street 23 2,219 2,006 94.0 50.0 31/03/2015 (a) 25,200 26,000 1.0 1.1 6 Marsiling Lane 09/03/2007 60 years 23 years 6 Marsiling Lane 2,332 1,844 86.0 100 31/03/2015 (a) 22,100 22,100 0.9 0.9 134 Joo Seng Road 10/04/2007 30+30 years 37 years 134 Joo Seng Road 608 435 73.0 46.0 31/03/2015 (a) 9,900 10,000 0.4 0.4 Union Steel (Pioneer) 30/11/2007 30+30 years 38 years 31/33 Pioneer Road North 658 586 100 100 31/03/2015 (a) 7,600 7,300 0.3 0.3 119 Neythal Road 30/11/2007 60 years 25 years 119 Neythal Road 983 1,087 59.0 41.0 31/03/2015 (a) 15,100 16,800 0.6 0.7 30 Tuas South Avenue 8 30/11/2007 30+30 years 44 years 30 Tuas South Avenue 8 682 592 100 100 31/03/2015 (a) 7,700 7,600 0.3 0.3 Union Steel (Tuas View) 30/11/2007 60 years 41 years 8 Tuas View Square 504 477 100 100 31/03/2015 (a) 7,200 6,600 0.3 0.3 Pioneer Districentre 14/12/2007 12+12 years 21 years 10 Tuas Avenue 13 1,532 1,493 100 100 31/03/2015 (a) 16,200 17,200 0.6 0.7 76 Pioneer Road 24/04/2008 30+30 years 38 years 76 Pioneer Road 4,461 4,395 100 100 31/03/2015 (a) 52,000 56,000 2.0 2.4 3A Jalan Terusan 02/05/2008 30+12 years 22 years 3A Jalan Terusan 2,600 2,600 100 100 31/03/2015 (a) 26,000 27,800 1.0 1.2 Menlo (Boon Lay Way) 30/06/2008 30+15 years 20 years 30 Boon Lay Way 1,530 3,944 35.0 100 31/03/2015 (a) 38,800 45,000 1.5 1.9 Menlo (Benoi) 30/06/2008 20 years 15 years 22A Benoi Road 722 710 100 100 31/03/2015 (a) 6,500 6,800 0.3 0.3 SH Cogent (Penjuru Close) 15/12/2009 29 years 20 years 7 Penjuru Close 4,699 4,607 100 100 31/03/2015 (a) 54,500 55,000 2.1 2.3 CEVA (Changi South) 11/03/2010 25+30 years 39 years 15 Changi South Street 2 3,490 3,498 50.0 100 31/03/2015 (a) 42,500 47,000 1.7 2.0 Natural Cool Lifestyle Hub 18/08/2010 30+30 years 52 years 29 Tai Seng Avenue 4,773 4,682 100 100 31/03/2015 (a) 56,800 58,900 2.2 2.5 AW Centre 25/10/2010 30+30 years 42 years 73 Tuas South Avenue 1 1,584 1,560 100 100 31/03/2015 (a) 19,100 19,700 0.8 0.8 Liang Huat Building 26/11/2010 30+30 years 40 years 51 Benoi Road 4,680 4,589 100 100 31/03/2015 (a) 55,600 57,000 2.2 2.4 JEP Centre 20/12/2010 30/30 years (i) 22 years 44/46 Changi South Street 1 1,580 1,565 100 100 31/03/2015 (a) 16,600 17,500 0.7 0.7 NS Tang Building 24/12/2010 30+28 years 36 years 36 Loyang Drive 1,212 1,194 100 100 31/03/2015 (a) 16,200 14,300 0.6 0.6 Jian Huang Building 31/03/2011 30 years 22 years 15A Tuas Avenue 18 2,210 2,167 100 100 31/03/2015 (a) 24,200 25,500 1.0 1.1 190A Pandan Loop 18/11/2014 30+30 years 40 years 190A Pandan Loop 925 - 82.0 N/A 31/03/2015 (a) 37,050 - 1.5 - 30 Woodlands Loop 06/02/2007 - - 30 Woodlands Loop - 6 ------
* Refers to the tenure of underlying land. Remaining term of lease includes option to renew land leases.
ANNUAL REPORT 2014/2015 101 Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Japan
Gyoda Centre 02/02/2007 Freehold - 5-9-4, Nagano, Gyoda-shi, 1,680 1,779 100 100 31/03/2015 (b) 16,574 18,282 0.7 0.8 Saitama
Ayase Centre 27/04/2007 Freehold - 2-112-1, Yoshioka Higashi, 955 1,006 100 100 31/03/2015 (b) 12,344 12,883 0.5 0.5 Ayase-shi, Kanagawa
Kyoto Centre 27/04/2007 Freehold - 1 Shouryuuji Tobio, 5,415 5,738 100 100 31/03/2015 (b) 78,753 85,767 3.1 3.6 Nagaokakyo-shi, Kyoto
Atsugi Centre 27/04/2007 Freehold - 6493-1, Aza Otsukashita, 2,774 2,608 100 100 31/03/2015 (b) 38,942 42,024 1.5 1.8 Nakatsu, Aikawa-machi, Aiko-gun, Kanagawa
Zama Centre 27/04/2007 Freehold - 2-5020-1, Hironodai, 6,653 6,631 100 100 31/03/2015 (b) 105,990 113,791 4.2 4.8 Zama-shi, Kanagawa
Funabashi Centre 27/04/2007 Freehold - 488-33, Suzumi-cho 2,926 2,902 100 100 31/03/2015 (b) 44,566 41,104 1.8 1.7 Funabashi-shi, Chiba
Shiroishi Centre 06/12/2007 Freehold - 1-227-102, Ryutsu Centre, 759 810 100 100 31/03/2015(b) 6,629 8,196 0.3 0.3 Shiroishi-ku, Sapporo-shi, Hokkaido
Kashiwa Centre 30/09/2008 Freehold - 1046-1, Aza Nishishimonodai, 4,904 4,920 100 100 31/03/2015 (b) 72,409 75,767 2.9 3.2 Takata, Kashiwa-shi, Chiba
Shonan Centre 26/02/2010 Freehold - 1027-29, Aza Miyagohara, 4,121 4,234 100 100 31/03/2015 (b) 65,117 63,804 2.6 2.7 Washinoya, Kashiwa-shi, Chiba
Sendai Centre 03/06/2010 Freehold - 2-1-6 Minato, Miyagino-ku 1,305 1,383 100 100 31/03/2015 (b) 18,059 19,264 0.7 0.8 Sendai-shi Miyagi
Iwatsuki Centre (j) 21/09/2010 Freehold - 783-2 Aza Yonban, 1,633 1,640 100 100 31/03/2015 (b) 33,684 34,969 1.3 1.5 Oaza Magome, Iwatsuki-ku Saitama-shi Saitama
Iruma Centre 21/09/2010 Freehold - 803-1 Aza Nishihara, 3,225 3,418 100 100 31/03/2015 (b) 47,092 52,638 1.8 2.2 Oaza Kami-Fujisawa, Iruma-shi, Saitama
The accompanying notes form an integral part of these financial statements.
102 BUILDING TODAY, FOR TOMORROW Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Japan
Gyoda Centre 02/02/2007 Freehold - 5-9-4, Nagano, Gyoda-shi, 1,680 1,779 100 100 31/03/2015 (b) 16,574 18,282 0.7 0.8 Saitama
Ayase Centre 27/04/2007 Freehold - 2-112-1, Yoshioka Higashi, 955 1,006 100 100 31/03/2015 (b) 12,344 12,883 0.5 0.5 Ayase-shi, Kanagawa
Kyoto Centre 27/04/2007 Freehold - 1 Shouryuuji Tobio, 5,415 5,738 100 100 31/03/2015 (b) 78,753 85,767 3.1 3.6 Nagaokakyo-shi, Kyoto
Atsugi Centre 27/04/2007 Freehold - 6493-1, Aza Otsukashita, 2,774 2,608 100 100 31/03/2015 (b) 38,942 42,024 1.5 1.8 Nakatsu, Aikawa-machi, Aiko-gun, Kanagawa
Zama Centre 27/04/2007 Freehold - 2-5020-1, Hironodai, 6,653 6,631 100 100 31/03/2015 (b) 105,990 113,791 4.2 4.8 Zama-shi, Kanagawa
Funabashi Centre 27/04/2007 Freehold - 488-33, Suzumi-cho 2,926 2,902 100 100 31/03/2015 (b) 44,566 41,104 1.8 1.7 Funabashi-shi, Chiba
Shiroishi Centre 06/12/2007 Freehold - 1-227-102, Ryutsu Centre, 759 810 100 100 31/03/2015(b) 6,629 8,196 0.3 0.3 Shiroishi-ku, Sapporo-shi, Hokkaido
Kashiwa Centre 30/09/2008 Freehold - 1046-1, Aza Nishishimonodai, 4,904 4,920 100 100 31/03/2015 (b) 72,409 75,767 2.9 3.2 Takata, Kashiwa-shi, Chiba
Shonan Centre 26/02/2010 Freehold - 1027-29, Aza Miyagohara, 4,121 4,234 100 100 31/03/2015 (b) 65,117 63,804 2.6 2.7 Washinoya, Kashiwa-shi, Chiba
Sendai Centre 03/06/2010 Freehold - 2-1-6 Minato, Miyagino-ku 1,305 1,383 100 100 31/03/2015 (b) 18,059 19,264 0.7 0.8 Sendai-shi Miyagi
Iwatsuki Centre (j) 21/09/2010 Freehold - 783-2 Aza Yonban, 1,633 1,640 100 100 31/03/2015 (b) 33,684 34,969 1.3 1.5 Oaza Magome, Iwatsuki-ku Saitama-shi Saitama
Iruma Centre 21/09/2010 Freehold - 803-1 Aza Nishihara, 3,225 3,418 100 100 31/03/2015 (b) 47,092 52,638 1.8 2.2 Oaza Kami-Fujisawa, Iruma-shi, Saitama
ANNUAL REPORT 2014/2015 103 Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Japan (continued)
Noda Centre 21/09/2010 Freehold - 2106-1 Aza Kanoyama, 5,154 5,381 100 100 31/03/2015 (b) 77,667 81,349 3.1 3.4 Kinosaki Noda-shi, Chiba
Toki Centre 29/10/2010 Freehold - 1-1-1, Tokigaoka, 1,313 1,391 100 100 31/03/2015 (b) 17,603 19,018 0.7 0.8 Toki-Shi, Gifu
Hiroshima Centre 25/03/2011 Freehold - 3-3-1, Tomonishi, 6,603 6,897 100 100 31/03/2015 (b) 92,080 95,092 3.6 4.0 Asaminami-Ku, Hiroshima-shi, Hiroshima
Eniwa Centre 23/03/2012 Freehold - 345-17, Toiso, Eniwa-shi, 1,417 1,502 100 100 31/03/2015 (b) 17,945 18,773 0.7 0.8 Hokkaido
Sano Centre 23/03/2012 Freehold - 570-16, Nishiuracho, 893 946 100 100 31/03/2015 (b) 12,687 13,374 0.5 0.5 Sano-shi, Tochigi
Moriya Centre 23/03/2012 Freehold - 2-27-1, Midori, Moriya-shi, 3,850 4,079 100 100 31/03/2015 (b) 57,493 59,264 2.3 2.5 Ibaraki
Mokurenji Centre 23/03/2012 Freehold - 53-5, Aza Kakefuchi, 3,101 3,286 100 100 31/03/2015 (b) 48,349 48,957 1.8 2.1 Oaza Mokurenji, Iruma-shi, Saitama
Mizuhomachi Centre 23/03/2012 Freehold - 182, Ooaza Fujiyama 3,076 2,973 100 100 31/03/2015 (b) 46,874 48,994 1.8 2.1 Kuriharashinden, Mizuho-machi, Nishitama-gun, Tokyo
Aichi Miyoshi Centre 23/03/2012 Freehold - 27-403, Neura, Ukigaicho, 1,003 1,063 100 100 31/03/2015 (b) 13,716 14,724 0.5 0.6 Miyoshi-shi, Aichi
Kyotanabe Centre 23/03/2012 Freehold - 2-101, Kanabidai, 1,786 1,892 100 100 31/03/2015 (b) 25,489 27,362 1.0 1.1 Kyotanabe, Kyoto
The accompanying notes form an integral part of these financial statements.
104 BUILDING TODAY, FOR TOMORROW Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Japan (continued)
Noda Centre 21/09/2010 Freehold - 2106-1 Aza Kanoyama, 5,154 5,381 100 100 31/03/2015 (b) 77,667 81,349 3.1 3.4 Kinosaki Noda-shi, Chiba
Toki Centre 29/10/2010 Freehold - 1-1-1, Tokigaoka, 1,313 1,391 100 100 31/03/2015 (b) 17,603 19,018 0.7 0.8 Toki-Shi, Gifu
Hiroshima Centre 25/03/2011 Freehold - 3-3-1, Tomonishi, 6,603 6,897 100 100 31/03/2015 (b) 92,080 95,092 3.6 4.0 Asaminami-Ku, Hiroshima-shi, Hiroshima
Eniwa Centre 23/03/2012 Freehold - 345-17, Toiso, Eniwa-shi, 1,417 1,502 100 100 31/03/2015 (b) 17,945 18,773 0.7 0.8 Hokkaido
Sano Centre 23/03/2012 Freehold - 570-16, Nishiuracho, 893 946 100 100 31/03/2015 (b) 12,687 13,374 0.5 0.5 Sano-shi, Tochigi
Moriya Centre 23/03/2012 Freehold - 2-27-1, Midori, Moriya-shi, 3,850 4,079 100 100 31/03/2015 (b) 57,493 59,264 2.3 2.5 Ibaraki
Mokurenji Centre 23/03/2012 Freehold - 53-5, Aza Kakefuchi, 3,101 3,286 100 100 31/03/2015 (b) 48,349 48,957 1.8 2.1 Oaza Mokurenji, Iruma-shi, Saitama
Mizuhomachi Centre 23/03/2012 Freehold - 182, Ooaza Fujiyama 3,076 2,973 100 100 31/03/2015 (b) 46,874 48,994 1.8 2.1 Kuriharashinden, Mizuho-machi, Nishitama-gun, Tokyo
Aichi Miyoshi Centre 23/03/2012 Freehold - 27-403, Neura, Ukigaicho, 1,003 1,063 100 100 31/03/2015 (b) 13,716 14,724 0.5 0.6 Miyoshi-shi, Aichi
Kyotanabe Centre 23/03/2012 Freehold - 2-101, Kanabidai, 1,786 1,892 100 100 31/03/2015 (b) 25,489 27,362 1.0 1.1 Kyotanabe, Kyoto
ANNUAL REPORT 2014/2015 105 Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Hong Kong:
Tsuen Wan No.1 26/01/2006 149 years 33 years Nos. 43-57 2,888 2,692 100 100 31/03/2015 (c) 65,978 56,175 2.6 2.4 Wang Wo Tsai Street, Tsuen Wan, New Territories
Shatin No. 2 26/01/2006 60 years 33 years Nos. 21-23 5,287 4,841 100 100 31/03/2015 (c) 119,864 97,000 4.7 4.1 Yuen Shun Circuit, Shatin, New Territories
Shatin No. 3 26/01/2006 58 years 33 years No. 22 On Sum Street, 5,101 4,702 100 100 31/03/2015 (c) 115,774 90,631 4.6 3.8 Shatin, New Territories
Shatin No. 4 20/04/2006 55 years 33 years No. 28 On Muk Street, 12,437 11,210 100 100 31/03/2015 (c) 285,433 227,477 11.2 9.5 Shatin, New Territories
Bossini Logistics Centre 06/06/2006 60 years 33 years Nos. 4-8 Yip Wo Street, 1,654 1,619 100 100 31/03/2015 (c) 41,259 32,497 1.6 1.4 On Lok Tsuen, Fanling
AsiaTone i-Centre 11/09/2006 54 years 33 years No. 1 Wang Wo Tsai Street, 6,334 5,845 100 100 31/03/2015 (c) 105,993 72,669 4.2 3.0 Tsuen Wan, New Territories
Grandtech Centre 05/06/2007 56 years 33 years No. 8 On Ping Street, 11,750 10,311 99.0 98.7 31/03/2015 (c) 265,871 187,305 10.5 7.9 Shatin, New Territories
Shatin No. 5 14/08/2007 149 years 33 years No. 6 Wong Chuk Yueng 1,019 966 100 100 31/03/2015 (c) 25,965 18,943 1.0 0.8 Street, Shatin, New Territories
The accompanying notes form an integral part of these financial statements.
106 BUILDING TODAY, FOR TOMORROW Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Hong Kong:
Tsuen Wan No.1 26/01/2006 149 years 33 years Nos. 43-57 2,888 2,692 100 100 31/03/2015 (c) 65,978 56,175 2.6 2.4 Wang Wo Tsai Street, Tsuen Wan, New Territories
Shatin No. 2 26/01/2006 60 years 33 years Nos. 21-23 5,287 4,841 100 100 31/03/2015 (c) 119,864 97,000 4.7 4.1 Yuen Shun Circuit, Shatin, New Territories
Shatin No. 3 26/01/2006 58 years 33 years No. 22 On Sum Street, 5,101 4,702 100 100 31/03/2015 (c) 115,774 90,631 4.6 3.8 Shatin, New Territories
Shatin No. 4 20/04/2006 55 years 33 years No. 28 On Muk Street, 12,437 11,210 100 100 31/03/2015 (c) 285,433 227,477 11.2 9.5 Shatin, New Territories
Bossini Logistics Centre 06/06/2006 60 years 33 years Nos. 4-8 Yip Wo Street, 1,654 1,619 100 100 31/03/2015 (c) 41,259 32,497 1.6 1.4 On Lok Tsuen, Fanling
AsiaTone i-Centre 11/09/2006 54 years 33 years No. 1 Wang Wo Tsai Street, 6,334 5,845 100 100 31/03/2015 (c) 105,993 72,669 4.2 3.0 Tsuen Wan, New Territories
Grandtech Centre 05/06/2007 56 years 33 years No. 8 On Ping Street, 11,750 10,311 99.0 98.7 31/03/2015 (c) 265,871 187,305 10.5 7.9 Shatin, New Territories
Shatin No. 5 14/08/2007 149 years 33 years No. 6 Wong Chuk Yueng 1,019 966 100 100 31/03/2015 (c) 25,965 18,943 1.0 0.8 Street, Shatin, New Territories
ANNUAL REPORT 2014/2015 107 Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
China
Ouluo Logistics Centre 14/04/2006 50 years 37 years No. 785 and 909 Yuan Hang 2,753 2,862 85.0 100 31/03/2015 (c) 40,439 36,870 1.6 1.5 Road, Pudong New District, Shanghai
Mapletree Xi’an 24/05/2007 50 years 40 years No. 20 Mingguang Road, (14) 1,074 N/A N/A 31/03/2015 (c) 9,522 6,282 0.4 0.3 Distribution Centre(k) Economic and Technological Development Zone, Xi’an, Shaanxi Province
Mapletree AIP 11/12/2007 46 years 38 years 48 Hongmian Road, 4,813 4,713 100 100 31/03/2015 (c) 66,988 60,102 2.6 2.5 Xinhua Town, Huadu, Guangzhou
Northwest Logistics Park 19/08/2008 50 years 40 years No. 428 Jinda Road 2,303 2,100 98.0 77.0 31/03/2015 (c) 34,502 31,937 1.4 1.3 (Phase 1) and No.359 Yinxing Road, Taopu Town, Northwest Logistics Park, Putuo District, Shanghai
Northwest Logistics Park 19/08/2008 50 years 41 years No. 402 Jinda Road, 864 816 100 100 31/03/2015 (c) 12,546 11,316 0.5 0.5 (Phase 2) Taopu Town, Northwest Logistics Park, Putuo District, Shanghai
ISH WaiGaoQiao 23/10/2008 50 years 29 years No. 80 Fute North Road 3,416 3,258 100 100 31/03/2015 (c) 45,144 41,450 1.8 1.7 WaiGaoQiao FTZ, Pudong New District, Shanghai
Mapletree Wuxi Logistics Park 11/01/2013 50 years 41 years No. 8 Hua You Si Road, 2,916 2,756 94.0 100 31/03/2015 (c) 31,478 26,341 1.2 1.1 New District, Wuxi
Mapletree Zhengzhou 08/10/2014 50 years 47 years No. 221, Xida Road, Zhengzhou 2,172 - 100 N/A 31/03/2015 (c) 50,633 - 2.0 - Logistics Park National Economic & Technical Development Zone, Henan Province
Mapletree Yangshan 08/10/2014 50 years 41 years No. 579 & 639 Huigang Road, 1,482 - 100 N/A 31/03/2015 (c) 46,264 - 1.8 - Bonded Logistics Park Yangshan Bonded Port Area, Pudong New District, Shanghai
The accompanying notes form an integral part of these financial statements.
108 BUILDING TODAY, FOR TOMORROW Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
China
Ouluo Logistics Centre 14/04/2006 50 years 37 years No. 785 and 909 Yuan Hang 2,753 2,862 85.0 100 31/03/2015 (c) 40,439 36,870 1.6 1.5 Road, Pudong New District, Shanghai
Mapletree Xi’an 24/05/2007 50 years 40 years No. 20 Mingguang Road, (14) 1,074 N/A N/A 31/03/2015 (c) 9,522 6,282 0.4 0.3 Distribution Centre(k) Economic and Technological Development Zone, Xi’an, Shaanxi Province
Mapletree AIP 11/12/2007 46 years 38 years 48 Hongmian Road, 4,813 4,713 100 100 31/03/2015 (c) 66,988 60,102 2.6 2.5 Xinhua Town, Huadu, Guangzhou
Northwest Logistics Park 19/08/2008 50 years 40 years No. 428 Jinda Road 2,303 2,100 98.0 77.0 31/03/2015 (c) 34,502 31,937 1.4 1.3 (Phase 1) and No.359 Yinxing Road, Taopu Town, Northwest Logistics Park, Putuo District, Shanghai
Northwest Logistics Park 19/08/2008 50 years 41 years No. 402 Jinda Road, 864 816 100 100 31/03/2015 (c) 12,546 11,316 0.5 0.5 (Phase 2) Taopu Town, Northwest Logistics Park, Putuo District, Shanghai
ISH WaiGaoQiao 23/10/2008 50 years 29 years No. 80 Fute North Road 3,416 3,258 100 100 31/03/2015 (c) 45,144 41,450 1.8 1.7 WaiGaoQiao FTZ, Pudong New District, Shanghai
Mapletree Wuxi Logistics Park 11/01/2013 50 years 41 years No. 8 Hua You Si Road, 2,916 2,756 94.0 100 31/03/2015 (c) 31,478 26,341 1.2 1.1 New District, Wuxi
Mapletree Zhengzhou 08/10/2014 50 years 47 years No. 221, Xida Road, Zhengzhou 2,172 - 100 N/A 31/03/2015 (c) 50,633 - 2.0 - Logistics Park National Economic & Technical Development Zone, Henan Province
Mapletree Yangshan 08/10/2014 50 years 41 years No. 579 & 639 Huigang Road, 1,482 - 100 N/A 31/03/2015 (c) 46,264 - 1.8 - Bonded Logistics Park Yangshan Bonded Port Area, Pudong New District, Shanghai
ANNUAL REPORT 2014/2015 109 Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
South Korea
Yeoju Centre 22/02/2008 Freehold - 532-7, Maraeli, 703 971 100 94.0 31/03/2015 (d) 10,628 12,357 0.4 0.5 Neungsu-myun, Yujoo-gun, Gyeonggi-do, South Korea Multi-Q Centre (A&B) 14/09/2010 & Freehold - 937-5 Baekbong-ri 3,968 3,680 100 100 31/03/2015 (d) 40,590 45,865 1.6 1.9 31/01/2011 Baegam-myeon, Cheoin-gu Yongin-si, Gyeonggi-do, South Korea Iljuk Centre 06/05/2011 Freehold - 452-1, Goeun-ri, Iljuk-myeon, 1,539 1,347 100 89.0 31/03/2015 (d) 24,119 24,596 0.9 1.0 Anseong-si, Gyeonggi-do, South Korea KPPC Pyeongtaek Centre 17/06/2011 Freehold - 1203-1 Wonjeong-ri, 8,942 8,290 100 100 31/03/2015 (d) 98,400 103,967 3.9 4.4 Poseung-eup, Pyeongtaek-si, Gyeonggi-do, South Korea Jungbu Cold Warehouse 13/04/2012 Freehold - 704-7 & Others, Gouen-ri, 3,652 4,249 100 100 31/03/2015 (d) 30,750 38,498 1.2 1.6 Iljuk-Myeon, Anseong-si, Gyeonggi-do, South Korea Dooil Cold Warehouse 13/04/2012 Freehold - 16-1, 16-2, 17, 19, 30-1 2,988 3,949 100 100 31/03/2015 (d) 29,520 35,171 1.2 1.5 and 1233-3, Oksan-ri, Baekam-Myeon, Cheoin-gu, Yongin-si, Gyeonggi-do, South Korea Hyundai Logistics Centre 26/09/2012 Freehold - 162-6 & 162-7- Gusso-ri, 2,481 2,826 86.0 83.0 31/03/2015 (d) 29,413 29,467 1.2 1.2 Miyang-Myeon, Anseong-si, Gyeonggi-do, South Korea The Box Centre 04/07/2013 Freehold - 383 Seoicheon-ro 3,319 2,353 100 100 31/03/2015 (d) 39,628 37,131 1.6 1.6 Majang-myeon, Icheon-si, Gyeonggi-do, South Korea Daehwa Logistics Centre 17/07/2014 Freehold - 46 Jukyangdae-ro, 2,066 - 100 N/A 31/03/2015 (d) 34,133 - 1.3 - 904bun-gil, Baekam- myeon, Cheoin-gu Yongin-si, Gyeonggi-do, South Korea Smart Logistics Centre 10/12/2014 Freehold - 113-49 Premiumoutlet-ro, 680 - 100 N/A 11/11/2014(d) 28,659 - 1.1 - Majang-myeon, Icheon-city, Gyeonggi-do, South Korea
The accompanying notes form an integral part of these financial statements.
110 BUILDING TODAY, FOR TOMORROW Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
South Korea
Yeoju Centre 22/02/2008 Freehold - 532-7, Maraeli, 703 971 100 94.0 31/03/2015 (d) 10,628 12,357 0.4 0.5 Neungsu-myun, Yujoo-gun, Gyeonggi-do, South Korea Multi-Q Centre (A&B) 14/09/2010 & Freehold - 937-5 Baekbong-ri 3,968 3,680 100 100 31/03/2015 (d) 40,590 45,865 1.6 1.9 31/01/2011 Baegam-myeon, Cheoin-gu Yongin-si, Gyeonggi-do, South Korea Iljuk Centre 06/05/2011 Freehold - 452-1, Goeun-ri, Iljuk-myeon, 1,539 1,347 100 89.0 31/03/2015 (d) 24,119 24,596 0.9 1.0 Anseong-si, Gyeonggi-do, South Korea KPPC Pyeongtaek Centre 17/06/2011 Freehold - 1203-1 Wonjeong-ri, 8,942 8,290 100 100 31/03/2015 (d) 98,400 103,967 3.9 4.4 Poseung-eup, Pyeongtaek-si, Gyeonggi-do, South Korea Jungbu Cold Warehouse 13/04/2012 Freehold - 704-7 & Others, Gouen-ri, 3,652 4,249 100 100 31/03/2015 (d) 30,750 38,498 1.2 1.6 Iljuk-Myeon, Anseong-si, Gyeonggi-do, South Korea Dooil Cold Warehouse 13/04/2012 Freehold - 16-1, 16-2, 17, 19, 30-1 2,988 3,949 100 100 31/03/2015 (d) 29,520 35,171 1.2 1.5 and 1233-3, Oksan-ri, Baekam-Myeon, Cheoin-gu, Yongin-si, Gyeonggi-do, South Korea Hyundai Logistics Centre 26/09/2012 Freehold - 162-6 & 162-7- Gusso-ri, 2,481 2,826 86.0 83.0 31/03/2015 (d) 29,413 29,467 1.2 1.2 Miyang-Myeon, Anseong-si, Gyeonggi-do, South Korea The Box Centre 04/07/2013 Freehold - 383 Seoicheon-ro 3,319 2,353 100 100 31/03/2015 (d) 39,628 37,131 1.6 1.6 Majang-myeon, Icheon-si, Gyeonggi-do, South Korea Daehwa Logistics Centre 17/07/2014 Freehold - 46 Jukyangdae-ro, 2,066 - 100 N/A 31/03/2015 (d) 34,133 - 1.3 - 904bun-gil, Baekam- myeon, Cheoin-gu Yongin-si, Gyeonggi-do, South Korea Smart Logistics Centre 10/12/2014 Freehold - 113-49 Premiumoutlet-ro, 680 - 100 N/A 11/11/2014(d) 28,659 - 1.1 - Majang-myeon, Icheon-city, Gyeonggi-do, South Korea
ANNUAL REPORT 2014/2015 111 Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Malaysia
Pancuran 31/05/2006 99 years 81 years Lot 1, Persiaran Budiman, 2,165 1,841 100 100 31/03/2015 (e) 23,359 22,000 0.9 0.9 Section 23, 40300 Shah Alam, Selangor Darul Ehsan Zentraline 06/10/2006 99 years 80 years Lot 6, Persiaran Budiman, 1,011 1,004 100 100 31/03/2015 (e) 12,443 11,965 0.5 0.5 Section 23, 40300 Shah Alam, Selangor Darul Ehsan Subang 1 02/11/2006 99 years 81 years Lot 36545, Jalan TS 6/5 785 453 100 59.5 31/03/2015 (e) 10,687 10,035 0.4 0.4 Taman Perindustrian Subang, 47510 Subang Jaya, Selangor Darul Ehsan Subang 2 02/11/2006 99 years 74 years Lot 832, Jalan Subang 6, 564 540 100 100 31/03/2015 (e) 6,756 6,561 0.3 0.3 Taman Perindustrian Subang, 47500 Subang Jaya, Selangor Darul Ehsan Chee Wah 11/05/2007 Freehold - No. 16 Jalan PPU 3, 520 533 100 100 31/03/2015 (e) 7,099 6,947 0.3 0.3 Taman Perindustrian Puchong Utama, 47100 Puchong, Selangor Darul Ehsan Subang 3 10/09/2007 99 years 75 years Lot 2607, Jalan Subang 6, 607 621 100 100 31/03/2015 (e) 7,328 7,333 0.3 0.3 Taman Perindustrian Subang, 47510 Subang Jaya, Selangor Darul Ehsan Subang 4 10/09/2007 99 years 91 years Lot 298, Jalan Subang 6, 292 299 100 100 31/03/2015 (e) 3,893 3,860 0.2 0.2 Taman Perindustrian Subang, 47510 Subang Jaya, Selangor Darul Ehsan
The accompanying notes form an integral part of these financial statements.
112 BUILDING TODAY, FOR TOMORROW Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Malaysia
Pancuran 31/05/2006 99 years 81 years Lot 1, Persiaran Budiman, 2,165 1,841 100 100 31/03/2015 (e) 23,359 22,000 0.9 0.9 Section 23, 40300 Shah Alam, Selangor Darul Ehsan Zentraline 06/10/2006 99 years 80 years Lot 6, Persiaran Budiman, 1,011 1,004 100 100 31/03/2015 (e) 12,443 11,965 0.5 0.5 Section 23, 40300 Shah Alam, Selangor Darul Ehsan Subang 1 02/11/2006 99 years 81 years Lot 36545, Jalan TS 6/5 785 453 100 59.5 31/03/2015 (e) 10,687 10,035 0.4 0.4 Taman Perindustrian Subang, 47510 Subang Jaya, Selangor Darul Ehsan Subang 2 02/11/2006 99 years 74 years Lot 832, Jalan Subang 6, 564 540 100 100 31/03/2015 (e) 6,756 6,561 0.3 0.3 Taman Perindustrian Subang, 47500 Subang Jaya, Selangor Darul Ehsan Chee Wah 11/05/2007 Freehold - No. 16 Jalan PPU 3, 520 533 100 100 31/03/2015 (e) 7,099 6,947 0.3 0.3 Taman Perindustrian Puchong Utama, 47100 Puchong, Selangor Darul Ehsan Subang 3 10/09/2007 99 years 75 years Lot 2607, Jalan Subang 6, 607 621 100 100 31/03/2015 (e) 7,328 7,333 0.3 0.3 Taman Perindustrian Subang, 47510 Subang Jaya, Selangor Darul Ehsan Subang 4 10/09/2007 99 years 91 years Lot 298, Jalan Subang 6, 292 299 100 100 31/03/2015 (e) 3,893 3,860 0.2 0.2 Taman Perindustrian Subang, 47510 Subang Jaya, Selangor Darul Ehsan
ANNUAL REPORT 2014/2015 113 Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Malaysia (continued)
Senai - UPS 11/12/2007 Freehold - 161 & 162 Jalan Murni 12, 794 787 51.0 100 31/03/2015 (e) 10,534 10,421 0.4 0.4 Taman Perindustrian Murni, 81400 Senai, Johor Darul Takzim
Linfox 14/12/2007 Freehold - No. 3 Jalan Biola 33/1, 1,565 1,600 100 100 31/03/2015 (e) 17,748 17,754 0.7 0.7 Section 33 off Jalan Bukit Kemuning, 40400 Shah Alam, Selangor Darul Ehsan
Century 15/02/2008 Freehold - Lot No. 1829,1830 and 3399, 1,543 1,439 100 100 31/03/2015 (e) 15,840 15,439 0.6 0.6 Jalan Kem, off Jalan Teluk Gong, Kawasan Perindustrian Pandamaran, 42000 Pelabuhan Klang, Selangor Darul Ehsan
G-Force 17/10/2008 Freehold - Lot 2-30, 2-32, 2-34, 1,278 1,288 100 100 31/03/2015 (e) 16,069 15,825 0.6 0.7 Jalan Su 6A, Persiaran Tengku Ampuan, Lion Industrial Park, Section 26, 40400 Shah Alam, Selangor Darul Ehsan
Celestica Hub 18/05/2012 Freehold - Lot Nos. 205 & 211, 1,055 1,068 100 100 31/03/2015 (e) 12,481 11,965 0.5 0.5 Jalan Seelong 81400 Senai, Johor
Padi Warehouse 29/05/2012 60 years 28 years PLO 271, Jalan Gangsa, 1,274 1,199 100 100 31/03/2015 (e) 12,786 12,737 0.5 0.5 Pasir Gudang Industrial Estate 81700 Pasir Gudang, Johor
Flex Hub 30/06/2014 60 years 51 years No. 11, Jalan Persiaran 2,408 - 100 N/A 31/03/2015 (e) 34,771 - 1.4 - Teknologi, Taman Teknologi Johor 81400 Senai, Johor
The accompanying notes form an integral part of these financial statements.
114 BUILDING TODAY, FOR TOMORROW Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Malaysia (continued)
Senai - UPS 11/12/2007 Freehold - 161 & 162 Jalan Murni 12, 794 787 51.0 100 31/03/2015 (e) 10,534 10,421 0.4 0.4 Taman Perindustrian Murni, 81400 Senai, Johor Darul Takzim
Linfox 14/12/2007 Freehold - No. 3 Jalan Biola 33/1, 1,565 1,600 100 100 31/03/2015 (e) 17,748 17,754 0.7 0.7 Section 33 off Jalan Bukit Kemuning, 40400 Shah Alam, Selangor Darul Ehsan
Century 15/02/2008 Freehold - Lot No. 1829,1830 and 3399, 1,543 1,439 100 100 31/03/2015 (e) 15,840 15,439 0.6 0.6 Jalan Kem, off Jalan Teluk Gong, Kawasan Perindustrian Pandamaran, 42000 Pelabuhan Klang, Selangor Darul Ehsan
G-Force 17/10/2008 Freehold - Lot 2-30, 2-32, 2-34, 1,278 1,288 100 100 31/03/2015 (e) 16,069 15,825 0.6 0.7 Jalan Su 6A, Persiaran Tengku Ampuan, Lion Industrial Park, Section 26, 40400 Shah Alam, Selangor Darul Ehsan
Celestica Hub 18/05/2012 Freehold - Lot Nos. 205 & 211, 1,055 1,068 100 100 31/03/2015 (e) 12,481 11,965 0.5 0.5 Jalan Seelong 81400 Senai, Johor
Padi Warehouse 29/05/2012 60 years 28 years PLO 271, Jalan Gangsa, 1,274 1,199 100 100 31/03/2015 (e) 12,786 12,737 0.5 0.5 Pasir Gudang Industrial Estate 81700 Pasir Gudang, Johor
Flex Hub 30/06/2014 60 years 51 years No. 11, Jalan Persiaran 2,408 - 100 N/A 31/03/2015 (e) 34,771 - 1.4 - Teknologi, Taman Teknologi Johor 81400 Senai, Johor
ANNUAL REPORT 2014/2015 115 Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Vietnam
Mapletree Logistics Centre 01/06/2010 42 years 35 years No. 1, VSIP Street 10, 1,368 1,308 100 100 31/03/2015 (f) 9,227 8,434 0.4 0.4 Vietnam Singapore Industrial Park, Thuan An District, Binh Duong Province Investment properties 330,114 310,709 4,631,216 4,235,119 182.5 177.8 Other assets and liabilities (net) (1,742,891) (1,502,936) (68.7) (63.1) Net assets of Group 2,888,325 2,732,183 113.8 114.7 Perpetual securities (344,010) (344,010) (13.6) (14.4) Non-controlling interest (6,042) (6,309) (0.2) (0.3) Net assets attributable to Unitholders 2,538,273 2,381,864 100.0 100.0
The accompanying notes form an integral part of these financial statements.
116 BUILDING TODAY, FOR TOMORROW Portfolio Statements As at 31 March 2015
Group
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease lease Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Vietnam
Mapletree Logistics Centre 01/06/2010 42 years 35 years No. 1, VSIP Street 10, 1,368 1,308 100 100 31/03/2015 (f) 9,227 8,434 0.4 0.4 Vietnam Singapore Industrial Park, Thuan An District, Binh Duong Province Investment properties 330,114 310,709 4,631,216 4,235,119 182.5 177.8 Other assets and liabilities (net) (1,742,891) (1,502,936) (68.7) (63.1) Net assets of Group 2,888,325 2,732,183 113.8 114.7 Perpetual securities (344,010) (344,010) (13.6) (14.4) Non-controlling interest (6,042) (6,309) (0.2) (0.3) Net assets attributable to Unitholders 2,538,273 2,381,864 100.0 100.0
ANNUAL REPORT 2014/2015 117 Portfolio Statements As at 31 March 2015
MLT
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease* lease* Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Singapore
TIC Tech Centre 28/07/2004 30+30 years 41 years 25 Pandan Crescent 3,730 8,548 55.0 100 31/03/2015 (a) 63,300 74,400 3.2 3.8 19 Senoko Loop 06/12/2004 30+30 years 39 years 19 Senoko Loop 2,136 2,131 75.0 100 31/03/2015 (a) 18,500 23,100 1.0 1.2 Expeditors 03/01/2005 30 years 19 years 61 Alps Avenue 2,428 2,268 100 100 31/03/2015 (a) 20,250 21,000 1.0 1.1 Allied Telesis 03/01/2005 30+30 years 49 years 11 Tai Seng Link 1,993 1,944 100 100 31/03/2015 (a) 18,000 20,000 0.9 1.0 Mapletree Benoi Logistics Hub 17/05/2005 30 years 25 years 21 Benoi Sector 16,306 2,366 100 100 31/03/2015 (a) 149,000 148,500 7.8 7.5 37 Penjuru Lane 17/05/2005 30 years 11 years 37 Penjuru Lane 1,747 1,809 88.0 86.0 31/03/2015 (a) 9,650 10,000 0.5 0.5 6 Changi South Lane 07/06/2005 30+30 years 40 years 6 Changi South Lane 2,278 2,009 100 100 31/03/2015 (a) 21,800 21,800 1.1 1.1 Armstrong 13/06/2005 30+30 years 41 years 531 Bukit Batok Street 23 2,112 2,070 100 100 31/03/2015 (a) 24,000 28,000 1.3 1.4 70 Alps Avenue 16/06/2005 30 years 18 years 70 Alps Avenue 5,234 4,809 100 100 31/03/2015 (a) 33,700 35,000 1.8 1.8 Menlo (Alps) 16/06/2005 29/30 years (g) 17 years 60 Alps Avenue 1,785 1,668 100 100 31/03/2015 (a) 19,000 21,000 1.0 1.1 Ban Teck Han 20/06/2005 30+30 years 41 years 21 Serangoon North Avenue 5 1,864 1,836 100 100 31/03/2015 (a) 24,900 25,600 1.3 1.3 5B Toh Guan Road East 22/06/2005 30+30 years 36 years 5B Toh Guan Road East 428 3,124 N/A N/A 31/03/2015 (a) 52,700 35,000 2.8 1.8 50 Airport Boulevard 28/07/2005 60 years 25 years 50 Airport Boulevard 1,707 1,690 100 100 31/03/2015 (a) 23,700 23,500 1.2 1.2 Prima 28/07/2005 99 years 82 years 201 Keppel Road 1,924 1,851 100 100 31/03/2015 (a) 41,800 41,700 2.2 2.1 Pulau Sebarok 28/07/2005 73 years 56 years Pulau Sebarok 7,452 7,237 100 100 31/03/2015 (a) 111,000 110,000 5.8 5.5 Kenyon 28/11/2005 30+23 years 38 years 8 Loyang Crescent 1,630 1,530 100 100 31/03/2015 (a) 22,300 21,500 1.2 1.1 Toppan 01/12/2005 28+30 years/ 35 years 97 Ubi Avenue 4 1,655 1,631 100 100 31/03/2015 (a) 18,600 18,400 1.0 0.9 30+30 years (h) 39 Changi South Avenue 2 01/12/2005 30+30 years 40 years 39 Changi South Avenue 2 1,127 827 100 73.0 31/03/2015 (a) 11,900 11,000 0.6 0.6 2 Serangoon North Avenue 5 07/02/2006 30+30 years 41 years 2 Serangoon North Avenue 5 5,455 5,774 94.0 82.0 31/03/2015 (a) 54,710 57,500 2.9 2.9 10 Changi South Street 3 10/02/2006 30+30 years 40 years 10 Changi South Street 3 1,935 1,441 91.0 91.0 31/03/2015 (a) 18,000 19,000 0.9 1.0 Popular 06/03/2006 30+30 years 42 years 20 Old Toh Tuck Road 1,138 1,115 100 100 31/03/2015 (a) 13,500 14,500 0.7 0.7 85 Defu Lane 10 07/07/2006 30+30 years 35 years 85 Defu Lane 10 1,865 1,802 92.0 100 31/03/2015 (a) 16,500 17,200 0.9 0.9 31 Penjuru Lane 18/07/2006 30+13 years 17 years 31 Penjuru Lane 1,410 1,873 38.3 100 31/03/2015 (a) 16,600 17,800 0.9 0.9 8 Changi South Lane 18/08/2006 30+30 years 42 years 8 Changi South Lane 1,357 1,694 94.0 100 31/03/2015 (a) 16,400 18,000 0.9 0.9 Markono 01/09/2006 30+30 years 42 years 4 Toh Tuck Link 1,125 1,108 100 100 31/03/2015 (a) 14,500 15,000 0.8 0.7 138 Joo Seng Road 07/09/2006 30+30 years 36 years 138 Joo Seng Road 1,808 1,828 85.0 100 31/03/2015 (a) 16,000 16,000 0.8 0.8 Kim Seng 13/09/2006 30+30 years 34 years 4 Tuas Avenue 5 1,316 1,290 100 100 31/03/2015 (a) 15,500 16,500 0.8 0.8 7 Tai Seng Drive 03/10/2006 30+30 years 38 years 7 Tai Seng Drive 3,888 3,962 83.0 98.0 31/03/2015 (a) 38,900 41,000 2.0 2.1 Jurong Logistics Hub 20/10/2006 30+30 years 46 years 31 Jurong Port Road 24,251 23,918 98.0 99.0 31/03/2015 (a) 246,500 244,500 12.9 12.4 Kingsmen Creatives 01/02/2007 30+30 years 44 years 3 Changi South Lane 1,689 1,450 100 100 31/03/2015 (a) 17,300 17,300 0.9 0.8 1 Genting Lane 08/02/2007 60 years 33 years 1 Genting Lane 1,004 1,165 100 100 31/03/2015 (a) 12,830 13,000 0.7 0.6
* Refers to the tenure of underlying land. Remaining term of lease includes option to renew land leases.
The accompanying notes form an integral part of these financial statements.
118 BUILDING TODAY, FOR TOMORROW Portfolio Statements As at 31 March 2015
MLT
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease* lease* Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Singapore
TIC Tech Centre 28/07/2004 30+30 years 41 years 25 Pandan Crescent 3,730 8,548 55.0 100 31/03/2015 (a) 63,300 74,400 3.2 3.8 19 Senoko Loop 06/12/2004 30+30 years 39 years 19 Senoko Loop 2,136 2,131 75.0 100 31/03/2015 (a) 18,500 23,100 1.0 1.2 Expeditors 03/01/2005 30 years 19 years 61 Alps Avenue 2,428 2,268 100 100 31/03/2015 (a) 20,250 21,000 1.0 1.1 Allied Telesis 03/01/2005 30+30 years 49 years 11 Tai Seng Link 1,993 1,944 100 100 31/03/2015 (a) 18,000 20,000 0.9 1.0 Mapletree Benoi Logistics Hub 17/05/2005 30 years 25 years 21 Benoi Sector 16,306 2,366 100 100 31/03/2015 (a) 149,000 148,500 7.8 7.5 37 Penjuru Lane 17/05/2005 30 years 11 years 37 Penjuru Lane 1,747 1,809 88.0 86.0 31/03/2015 (a) 9,650 10,000 0.5 0.5 6 Changi South Lane 07/06/2005 30+30 years 40 years 6 Changi South Lane 2,278 2,009 100 100 31/03/2015 (a) 21,800 21,800 1.1 1.1 Armstrong 13/06/2005 30+30 years 41 years 531 Bukit Batok Street 23 2,112 2,070 100 100 31/03/2015 (a) 24,000 28,000 1.3 1.4 70 Alps Avenue 16/06/2005 30 years 18 years 70 Alps Avenue 5,234 4,809 100 100 31/03/2015 (a) 33,700 35,000 1.8 1.8 Menlo (Alps) 16/06/2005 29/30 years (g) 17 years 60 Alps Avenue 1,785 1,668 100 100 31/03/2015 (a) 19,000 21,000 1.0 1.1 Ban Teck Han 20/06/2005 30+30 years 41 years 21 Serangoon North Avenue 5 1,864 1,836 100 100 31/03/2015 (a) 24,900 25,600 1.3 1.3 5B Toh Guan Road East 22/06/2005 30+30 years 36 years 5B Toh Guan Road East 428 3,124 N/A N/A 31/03/2015 (a) 52,700 35,000 2.8 1.8 50 Airport Boulevard 28/07/2005 60 years 25 years 50 Airport Boulevard 1,707 1,690 100 100 31/03/2015 (a) 23,700 23,500 1.2 1.2 Prima 28/07/2005 99 years 82 years 201 Keppel Road 1,924 1,851 100 100 31/03/2015 (a) 41,800 41,700 2.2 2.1 Pulau Sebarok 28/07/2005 73 years 56 years Pulau Sebarok 7,452 7,237 100 100 31/03/2015 (a) 111,000 110,000 5.8 5.5 Kenyon 28/11/2005 30+23 years 38 years 8 Loyang Crescent 1,630 1,530 100 100 31/03/2015 (a) 22,300 21,500 1.2 1.1 Toppan 01/12/2005 35 years 97 Ubi Avenue 4 1,655 1,631 100 100 31/03/2015 (a) 18,600 18,400 1.0 0.9
39 Changi South Avenue 2 01/12/2005 30+30 years 40 years 39 Changi South Avenue 2 1,127 827 100 73.0 31/03/2015 (a) 11,900 11,000 0.6 0.6 2 Serangoon North Avenue 5 07/02/2006 30+30 years 41 years 2 Serangoon North Avenue 5 5,455 5,774 94.0 82.0 31/03/2015 (a) 54,710 57,500 2.9 2.9 10 Changi South Street 3 10/02/2006 30+30 years 40 years 10 Changi South Street 3 1,935 1,441 91.0 91.0 31/03/2015 (a) 18,000 19,000 0.9 1.0 Popular 06/03/2006 30+30 years 42 years 20 Old Toh Tuck Road 1,138 1,115 100 100 31/03/2015 (a) 13,500 14,500 0.7 0.7 85 Defu Lane 10 07/07/2006 30+30 years 35 years 85 Defu Lane 10 1,865 1,802 92.0 100 31/03/2015 (a) 16,500 17,200 0.9 0.9 31 Penjuru Lane 18/07/2006 30+13 years 17 years 31 Penjuru Lane 1,410 1,873 38.3 100 31/03/2015 (a) 16,600 17,800 0.9 0.9 8 Changi South Lane 18/08/2006 30+30 years 42 years 8 Changi South Lane 1,357 1,694 94.0 100 31/03/2015 (a) 16,400 18,000 0.9 0.9 Markono 01/09/2006 30+30 years 42 years 4 Toh Tuck Link 1,125 1,108 100 100 31/03/2015 (a) 14,500 15,000 0.8 0.7 138 Joo Seng Road 07/09/2006 30+30 years 36 years 138 Joo Seng Road 1,808 1,828 85.0 100 31/03/2015 (a) 16,000 16,000 0.8 0.8 Kim Seng 13/09/2006 30+30 years 34 years 4 Tuas Avenue 5 1,316 1,290 100 100 31/03/2015 (a) 15,500 16,500 0.8 0.8 7 Tai Seng Drive 03/10/2006 30+30 years 38 years 7 Tai Seng Drive 3,888 3,962 83.0 98.0 31/03/2015 (a) 38,900 41,000 2.0 2.1 Jurong Logistics Hub 20/10/2006 30+30 years 46 years 31 Jurong Port Road 24,251 23,918 98.0 99.0 31/03/2015 (a) 246,500 244,500 12.9 12.4 Kingsmen Creatives 01/02/2007 30+30 years 44 years 3 Changi South Lane 1,689 1,450 100 100 31/03/2015 (a) 17,300 17,300 0.9 0.8 1 Genting Lane 08/02/2007 60 years 33 years 1 Genting Lane 1,004 1,165 100 100 31/03/2015 (a) 12,830 13,000 0.7 0.6
* Refers to the tenure of underlying land. Remaining term of lease includes option to renew land leases.
ANNUAL REPORT 2014/2015 119 Portfolio Statements As at 31 March 2015
MLT
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease* lease* Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Singapore (continued)
20 Tampines Street 92 27/02/2007 30+30 years 35 years 20 Tampines Street 92 1,065 1,015 100 100 31/03/2015 (a) 12,450 13,500 0.7 0.7 521 Bukit Batok Street 23 28/02/2007 30+30 years 40 years 521 Bukit Batok Street 23 2,219 2,006 94.0 50.0 31/03/2015 (a) 25,200 26,000 1.3 1.3 6 Marsiling Lane 09/03/2007 60 years 23 years 6 Marsiling Lane 2,332 1,844 86.0 100 31/03/2015 (a) 22,100 22,100 1.2 1.1 134 Joo Seng Road 10/04/2007 30+30 years 37 years 134 Joo Seng Road 608 435 73.0 46.0 31/03/2015 (a) 9,900 10,000 0.5 0.5 Union Steel (Pioneer) 30/11/2007 30+30 years 38 years 31/33 Pioneer Road North 658 586 100 100 31/03/2015 (a) 7,600 7,300 0.4 0.4 119 Neythal Road 30/11/2007 60 years 25 years 119 Neythal Road 983 1,087 59.0 41.0 31/03/2015 (a) 15,100 16,800 0.8 0.8 30 Tuas South Avenue 8 30/11/2007 30+30 years 44 years 30 Tuas South Avenue 8 682 592 100 100 31/03/2015 (a) 7,700 7,600 0.4 0.4 Union Steel (Tuas View) 30/11/2007 60 years 41 years 8 Tuas View Square 504 477 100 100 31/03/2015 (a) 7,200 6,600 0.4 0.3 Pioneer Districentre 14/12/2007 12+12 years 21 years 10 Tuas Avenue 13 1,532 1,493 100 100 31/03/2015 (a) 16,200 17,200 0.8 0.9 76 Pioneer Road 24/04/2008 30+30 years 38 years 76 Pioneer Road 4,461 4,395 100 100 31/03/2015 (a) 52,000 56,000 2.7 2.8 3A Jalan Terusan 02/05/2008 30+12 years 22 years 3A Jalan Terusan 2,600 2,600 100 100 31/03/2015 (a) 26,000 27,800 1.4 1.4 Menlo (Boon Lay Way) 30/06/2008 30+15 years 20 years 30 Boon Lay Way 1,530 3,944 35.0 100 31/03/2015 (a) 38,800 45,000 2.0 2.3 Menlo (Benoi) 30/06/2008 20 years 15 years 22A Benoi Road 722 710 100 100 31/03/2015 (a) 6,500 6,800 0.3 0.3 SH Cogent (Penjuru Close) 15/12/2009 29 years 20 years 7 Penjuru Close 4,699 4,607 100 100 31/03/2015 (a) 54,500 55,000 2.8 2.8 CEVA (Changi South) 11/03/2010 25+30 years 39 years 15 Changi South Street 2 3,490 3,498 50.0 100 31/03/2015 (a) 42,500 47,000 2.2 2.4 Natural Cool Lifestyle Hub 18/08/2010 30+30 years 52 years 29 Tai Seng Avenue 4,773 4,682 100 100 31/03/2015 (a) 56,800 58,900 3.0 3.0 AW Centre 25/10/2010 30+30 years 42 years 73 Tuas South Avenue 1 1,584 1,560 100 100 31/03/2015 (a) 19,100 19,700 1.0 1.0 Liang Huat Building 26/11/2010 30+30 years 40 years 51 Benoi Road 4,680 4,589 100 100 31/03/2015 (a) 55,600 57,000 2.9 2.9 JEP Centre 20/12/2010 30/30 years (i) 22 years 44/46 Changi South Street 1 1,580 1,565 100 100 31/03/2015 (a) 16,600 17,500 0.9 0.9 NS Tang Building 24/12/2010 30+28 years 36 years 36 Loyang Drive 1,212 1,194 100 100 31/03/2015 (a) 16,200 14,300 0.8 0.7 Jian Huang Building 31/03/2011 30 years 22 years 15A Tuas Avenue 18 2,210 2,167 100 100 31/03/2015 (a) 24,200 25,500 1.3 1.3 190A Pandan Loop 18/11/2014 30+30 years 40 years 190A Pandan Loop 925 - 82.0 N/A 31/03/2015 (a) 37,050 - 1.9 - 30 Woodlands Loop 06/02/2007 - - 30 Woodlands Loop - 6 ------Investment properties 150,826 142,820 1,750,640 1,754,400 91.5 88.7 Other assets and liabilities (net) 506,390 566,878 26.5 28.7 Net assets of MLT 2,257,030 2,321,278 118.0 117.4 Perpetual securities (344,010) (344,010) (18.0) (17.4) Net assets attributable to Unitholders 1,913,020 1,977,268 100.0 100.0
* Refers to the tenure of underlying land. Remaining term of lease includes option to renew land leases.
The accompanying notes form an integral part of these financial statements.
120 BUILDING TODAY, FOR TOMORROW Portfolio Statements As at 31 March 2015
MLT
Percentage Percentage of total of total Gross Gross net assets net assets Remaining revenue for revenue for Occupancy Occupancy Latest At At attributable to attributable to Date of legal Term of term of year ended year ended rates rates valuation valuation at valuation at Unitholders at Unitholders at Description of property completion lease* lease* Location 31/03/2015 31/03/2014 FY14/15 FY13/14 date 31/03/2015 31/03/2014 31/03/2015 31/03/2014 S$’000 S$’000 % % S$’000 S$’000 % %
Logistics Properties
Singapore (continued)
20 Tampines Street 92 27/02/2007 30+30 years 35 years 20 Tampines Street 92 1,065 1,015 100 100 31/03/2015 (a) 12,450 13,500 0.7 0.7 521 Bukit Batok Street 23 28/02/2007 30+30 years 40 years 521 Bukit Batok Street 23 2,219 2,006 94.0 50.0 31/03/2015 (a) 25,200 26,000 1.3 1.3 6 Marsiling Lane 09/03/2007 60 years 23 years 6 Marsiling Lane 2,332 1,844 86.0 100 31/03/2015 (a) 22,100 22,100 1.2 1.1 134 Joo Seng Road 10/04/2007 30+30 years 37 years 134 Joo Seng Road 608 435 73.0 46.0 31/03/2015 (a) 9,900 10,000 0.5 0.5 Union Steel (Pioneer) 30/11/2007 30+30 years 38 years 31/33 Pioneer Road North 658 586 100 100 31/03/2015 (a) 7,600 7,300 0.4 0.4 119 Neythal Road 30/11/2007 60 years 25 years 119 Neythal Road 983 1,087 59.0 41.0 31/03/2015 (a) 15,100 16,800 0.8 0.8 30 Tuas South Avenue 8 30/11/2007 30+30 years 44 years 30 Tuas South Avenue 8 682 592 100 100 31/03/2015 (a) 7,700 7,600 0.4 0.4 Union Steel (Tuas View) 30/11/2007 60 years 41 years 8 Tuas View Square 504 477 100 100 31/03/2015 (a) 7,200 6,600 0.4 0.3 Pioneer Districentre 14/12/2007 12+12 years 21 years 10 Tuas Avenue 13 1,532 1,493 100 100 31/03/2015 (a) 16,200 17,200 0.8 0.9 76 Pioneer Road 24/04/2008 30+30 years 38 years 76 Pioneer Road 4,461 4,395 100 100 31/03/2015 (a) 52,000 56,000 2.7 2.8 3A Jalan Terusan 02/05/2008 30+12 years 22 years 3A Jalan Terusan 2,600 2,600 100 100 31/03/2015 (a) 26,000 27,800 1.4 1.4 Menlo (Boon Lay Way) 30/06/2008 30+15 years 20 years 30 Boon Lay Way 1,530 3,944 35.0 100 31/03/2015 (a) 38,800 45,000 2.0 2.3 Menlo (Benoi) 30/06/2008 20 years 15 years 22A Benoi Road 722 710 100 100 31/03/2015 (a) 6,500 6,800 0.3 0.3 SH Cogent (Penjuru Close) 15/12/2009 29 years 20 years 7 Penjuru Close 4,699 4,607 100 100 31/03/2015 (a) 54,500 55,000 2.8 2.8 CEVA (Changi South) 11/03/2010 25+30 years 39 years 15 Changi South Street 2 3,490 3,498 50.0 100 31/03/2015 (a) 42,500 47,000 2.2 2.4 Natural Cool Lifestyle Hub 18/08/2010 30+30 years 52 years 29 Tai Seng Avenue 4,773 4,682 100 100 31/03/2015 (a) 56,800 58,900 3.0 3.0 AW Centre 25/10/2010 30+30 years 42 years 73 Tuas South Avenue 1 1,584 1,560 100 100 31/03/2015 (a) 19,100 19,700 1.0 1.0 Liang Huat Building 26/11/2010 30+30 years 40 years 51 Benoi Road 4,680 4,589 100 100 31/03/2015 (a) 55,600 57,000 2.9 2.9 JEP Centre 20/12/2010 30/30 years (i) 22 years 44/46 Changi South Street 1 1,580 1,565 100 100 31/03/2015 (a) 16,600 17,500 0.9 0.9 NS Tang Building 24/12/2010 30+28 years 36 years 36 Loyang Drive 1,212 1,194 100 100 31/03/2015 (a) 16,200 14,300 0.8 0.7 Jian Huang Building 31/03/2011 30 years 22 years 15A Tuas Avenue 18 2,210 2,167 100 100 31/03/2015 (a) 24,200 25,500 1.3 1.3 190A Pandan Loop 18/11/2014 30+30 years 40 years 190A Pandan Loop 925 - 82.0 N/A 31/03/2015 (a) 37,050 - 1.9 - 30 Woodlands Loop 06/02/2007 - - 30 Woodlands Loop - 6 ------Investment properties 150,826 142,820 1,750,640 1,754,400 91.5 88.7 Other assets and liabilities (net) 506,390 566,878 26.5 28.7 Net assets of MLT 2,257,030 2,321,278 118.0 117.4 Perpetual securities (344,010) (344,010) (18.0) (17.4) Net assets attributable to Unitholders 1,913,020 1,977,268 100.0 100.0
* Refers to the tenure of underlying land. Remaining term of lease includes option to renew land leases.
ANNUAL REPORT 2014/2015 121 Portfolio Statements As at 31 March 2015
Investment properties comprise a portfolio of logistics properties that are leased to external customers. Generally, the leases for the multi-tenanted buildings contain an initial non-cancellable period of 1 to 3 years and leases for single tenanted buildings contain an initial non-cancellable period of up to 30 years. Subsequent renewals are negotiated with the lessees.
(a) The carrying amounts of the Singapore investment properties except for 190A Pandan Loop were based on independent full valuations as at 31 March 2015 undertaken by Cushman and Wakefield VHS Pte. Ltd., an independent valuer. Cushman and Wakefield VHS Pte. Ltd. has appropriate professional qualifications and recent experience in the location and category of the properties being valued. The full valuations of the investment properties were based on the income capitalisation method, discounted cash flow method and residual value method.
190A Pandan Loop was acquired in November 2014 and its carrying amount was based on independent full valuation obtained for the acquisition as at 1 October 2014 and desktop valuation as at 31 March 2015 undertaken by DTZ Debenham Tie Leung (SEA) Pte Ltd, an independent valuer. DTZ Debeham Tie Leung (SEA) Pte Ltd has appropriate professional qualifications and recent experience in the location and category of the properties being valued. Both full and desktop valuation of the investment property was based on the income capitalisation method and discounted cash flow method.
(b) The carrying amounts of the Japan investment properties were based on independent full valuations as at 31 March 2015 undertaken by Cushman and Wakefield K.K., an independent valuer. Cushman and Wakefield K.K. has appropriate professional qualifications and recent experience in the location and category of the properties being valued. The full valuations of the investment properties were based on the discounted cash flow method and income capitalisation method.
(c) The carrying amounts of the Hong Kong and China investment properties were based on independent full valuations as at 31 March 2015 undertaken by Cushman and Wakefield Valuation Advisory Services (HK) Ltd, an independent valuer. Cushman and Wakefield Valuation Advisory Services (HK) Ltd has appropriate professional qualifications and recent experience in the locations and category of the properties being valued. The full valuations of the investment properties were based on the income capitalisation method and discounted cash flow method.
(d) The carrying amounts of the South Korea investment properties except for Smart Logistics Centre were based on independent full valuations as at 31 March 2015 undertaken by Cushman and Wakefield Korea Ltd., an independent valuer. Cushman and Wakefield Korea Ltd. has appropriate professional qualifications and recent experience in the location and category of the properties being valued. The full valuations of the investment properties were based on the discounted cash flow method and direct comparison method.
Smart Logistics Centre was acquired in December 2014 and its carrying amount was based on an independent full valuation obtained for the acquisition as at 11 November 2014 undertaken by Kaaram Appraisal Co. Ltd, an independent valuer. Kaaram Appraisal Co. Ltd, has appropriate professional qualifications and recent experience in the location and category of the property being valued. The full valuation of the investment property was based on the direct comparison method, income capitalisation method and discounted cash flow method.
(e) The carrying amounts of the Malaysia investment properties were based on independent full valuations as at 31 March 2015 undertaken by IVPS Property Consultant Sdn. Bhd., an independent valuer. IVPS Property Consultant Sdn. Bhd. has appropriate professional qualifications and recent experience in the location and category of the properties being valued. The full valuations of the investment properties were based on the income capitalisation method.
(f) The carrying amount of the Vietnam investment property, Mapletree Logistics Centre, was based on an independent full valuation as at 31 March 2015 undertaken by Cushman and Wakefield Vietnam Co. Ltd. , an independent valuer. Cushman and Wakefield Co. Ltd. has appropriate professional qualifications and recent experience in the location and category of the property being valued. The full valuation of the investment property was based on the income capitalisation method and direct comparison method.
The accompanying notes form an integral part of these financial statements.
122 BUILDING TODAY, FOR TOMORROW Portfolio Statements As at 31 March 2015
(g) Comprises 2 land leases of 29 and 30 years both ending in September 2031.
(h) Comprises 2 land leases of 28 and 30 years ending in August and November 2019 respectively.
(i) Comprises 2 land leases of 30 years ending in February and October 2037 respectively.
(j) This property comprises one building with 100% occupancy and a vacant piece of land. The building which was previously on the vacant piece of land was burnt down in a fire in 2011.
(k) This property comprises two blocks of building, of which one block was partially damaged by the fire on 15 February 2014.
The accompanying notes form an integral part of these financial statements.
ANNUAL REPORT 2014/2015 123 Notes to the Financial Statements For the financial year ended 31 March 2015
These notes form an integral part of and should be read in conjunction with the accompanying financial statements.
1. General Mapletree Logistics Trust (“MLT”) is a Singapore-domiciled Real Estate Investment Trust constituted pursuant to the Trust Deed dated 5 July 2004 (as amended) between Mapletree Investments Pte Ltd and Mapletree Trustee Pte. Ltd. The Trust Deed is governed by the laws of the Republic of Singapore. Mapletree Logistics Trust Management Ltd. replaced Mapletree Investments Pte Ltd as manager of MLT on 14 June 2005 and HSBC Institutional Trust Services (Singapore) Limited replaced Mapletree Trustee Pte. Ltd. as trustee of MLT on 24 June 2005.
MLT was formally admitted to the Official List of the Singapore Exchange Securities Trading Limited on 28 July 2005.
The principal activity of MLT and its subsidiaries (the “Group”) is to invest in a diverse portfolio of logistics properties with the primary objective of achieving an attractive level of return from rental income and for long-term capital growth.
MLT has entered into several service agreements in relation to the management of MLT and its property operations. The fee structures for these services are as follows:
(a) Trustee’s fees The Trustee’s fees shall not exceed 0.1% per annum of the value of all the assets of MLT (“Deposited Property”) (subject to a minimum of S$10,000 per month) or such higher percentage as may be fixed by an Extraordinary Resolution of a meeting of Unitholders. The Trustee’s fees are payable out of the Deposited Property of MLT monthly, in arrears. The Trustee is also entitled to reimbursement of expenses incurred in the performance of its duties under the Trust Deed.
Based on the current arrangement between the Manager and the Trustee, the Trustee’s fees are charged on a scaled basis of up to 0.03% per annum of the value of the Deposited Property (subject to a minimum of S$10,000 per month).
(b) Manager’s management fees The Manager or its subsidiaries are entitled to receive the following remuneration:
(i) A base fee of 0.5% per annum of the value of the Deposited Property or such higher percentage as may be approved by an Extraordinary Resolution of a meeting of Unitholders; and
(ii) A performance fee of 3.6% per annum of the net property income of MLT or such higher percentage as may be approved by an Extraordinary Resolution of a meeting of Unitholders.
The management fees payable to the Manager or its subsidiaries will be paid in the form of cash or/and Units. Where the management fees are paid in cash, the amounts are paid monthly, in arrears. Where the management fees are paid in the form of Units, the amounts are paid quarterly, in arrears.
(c) Acquisition fee and disposal fee The Manager or its subsidiaries are entitled to receive the following fees:
(i) An acquisition fee not exceeding 1.0% of the acquisition price of any Authorised Investments (as defined in the Trust Deed), acquired directly or indirectly by MLT or such higher percentage as may be approved by an Extraordinary Resolution of a meeting of Unitholders; and
(ii) A disposal fee not exceeding 0.5% of the sale price of any Authorised Investments, sold or divested directly or indirectly by MLT or such higher percentage as may be approved by an Extraordinary Resolution of a meeting of Unitholders.
The acquisition fee and disposal fee will be paid in the form of cash or/and Units and are payable as soon as practicable after completion of the acquisition and disposal respectively.
124 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
1. General (continued)
(d) Development management fee
The Manager or its subsidiaries are entitled to receive a development management fee not exceeding 3.0% of the total project costs incurred in a development project undertaken on behalf of MLT, or such higher percentage as may be approved by an Extraordinary Resolution of a meeting of Unitholders.
The development management fee is payable in cash, in equal monthly instalments over the construction period of each development project based on the Manager’s best estimate of the total project costs and construction period and, if necessary, a final payment of the balance amount when the total project costs is finalised.
(e) Fees under the Property Management Agreement
(i) Property management services
The Trustee will pay Mapletree Property Management Pte. Ltd. (the “Property Manager”), for each Fiscal Year (as defined in the Property Management Agreement), a fee of up to 2.0% per annum of the gross revenue of each property.
(ii) Lease management services
Under the Property Management Agreement, the Trustee will pay the Property Manager, for each Fiscal Year, a fee of up to 1.0% per annum of the gross revenue of each property.
(iii) Marketing services
Under the Property Management Agreement, the Trustee will pay the Property Manager, the following commissions:
• 1 month’s gross rent inclusive of service charge for securing a tenancy of 3 years or less;
• 2 months’ gross rent inclusive of service charge for securing a tenancy of more than 3 years;
• If a third party agent secures a tenancy, the Property Manager will be responsible for all commission payable to such third party agent, and the Property Manager will be entitled to a commission of:
- 1.2 months’ gross rent inclusive of service charge for securing a tenancy of 3 years or less; and
- 2.4 months’ gross rent inclusive of service charge for securing a tenancy of more than 3 years;
• 0.5 month’s gross rent inclusive of service charge for securing a renewal of tenancy of 3 years or less; and
• 1 month’s gross rent inclusive of service charge for securing a renewal of tenancy of more than 3 years.
The Property Manager’s fees are payable monthly, in arrears.
ANNUAL REPORT 2014/2015 125 Notes to the Financial Statements For the financial year ended 31 March 2015
2. Significant accounting policies
2.1 Basis of preparation
The financial statements have been prepared in accordance with the Statement of Recommended Accounting Practice 7 (“RAP 7”) “Reporting Framework for Unit Trusts” issued by the Institute of Singapore Chartered Accountants (“ISCA”) and the applicable requirements of the Code on Collective Investment Schemes (“CIS”) issued by the Monetary Authority of Singapore (“MAS”) and the provisions of the Trust Deed. RAP 7 requires that accounting policies adopted should generally comply with the recognition and measurement principles of Singapore Financial Reporting Standards (“FRS”).
These financial statements, which are expressed in Singapore Dollars and rounded to the nearest thousand, have been prepared under the historical cost convention, except as disclosed in the accounting policies below.
The preparation of financial statements in conformity with RAP 7 requires management to exercise its judgement in the process of applying the Group’s accounting policies. It also requires the use of certain critical accounting estimates and assumptions. Information about an area involving a higher degree of judgment, where assumptions and estimates are significant to the financial statements, is disclosed in Note 13 – Investment properties. The assumptions and estimates were used by the independent valuers in arriving at their valuations.
Interpretations and amendments to published standards effective in 2014 On 1 April 2014, the Group adopted the new or amended FRS and Interpretations to FRS (“INT FRS”) that are mandatory for application for the financial year. Changes to the Group’s accounting policies have been made as required, in accordance with the relevant transitional provisions in the respective FRS and INT FRS.
The adoption of these new or amended FRS and INT FRS did not result in substantial changes to the accounting policies of the Group and MLT and had no material effect on the amounts reported for the current year or prior financial years.
2.2 Revenue recognition
(a) Rental income and service charge from operating leases
Rental income and service charge from operating leases (net of any incentives given to the lessees) on investment properties are recognised on a straight-line basis over the lease term.
(b) Interest income
Interest income is recognised on a time proportion basis using the effective interest method.
(c) Dividend income
Dividend income is recognised when the right to receive payment is established.
126 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
2. Significant accounting policies (continued)
2.3 Expenses
(a) Property expenses
Property expenses are recognised on an accrual basis. Included in property expenses are Property Manager’s fees which are based on the applicable formula stipulated in Note 1(e).
(b) Manager’s management fees
Manager’s management fees are recognised on an accrual basis using the applicable formula stipulated in Note 1(b).
(c) Borrowing costs
Interest expense and similar charges are recognised in the period in which they are incurred using the effective interest method.
2.4 Income tax
Taxation on the return for the year comprises current and deferred income tax. Income tax is recognised in the Statements of Total Return.
Current income tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the reporting date.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, if the deferred income tax arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of transaction affects neither accounting nor taxable profit or loss, it is not accounted for. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
Deferred income tax is provided on temporary differences arising on investment in subsidiaries except where the timing of the reversal of the temporary differences can be controlled and it is probable that temporary differences will not reverse in the foreseeable future.
The Inland Revenue Authority of Singapore (“IRAS”) has issued a tax ruling on the taxation of MLT for the income earned and expenditure incurred after its listing on the SGX-ST. Subject to meeting the terms and conditions of the tax rulings which includes a distribution of at least 90% of the taxable income of MLT, the Trustee will not be taxed on the portion of taxable income of MLT that is distributed to Unitholders. Any portion of the taxable income that is not distributed to Unitholders will be taxed on the Trustee. In the event that there are subsequent adjustments to the taxable income when the actual taxable income of MLT is finally agreed with the IRAS, such adjustments are taken up as an adjustment to the taxable income for the next distribution following the agreement with the IRAS.
ANNUAL REPORT 2014/2015 127 Notes to the Financial Statements For the financial year ended 31 March 2015
2. Significant accounting policies (continued)
2.4 Income tax (continued)
Although MLT is not taxed on its taxable income distributed, the Trustee and the Manager are required to deduct income tax at the applicable corporate tax rate from the distributions of such taxable income of MLT (i.e. which has not been taxed in the hands of the Trustee) to certain Unitholders. The Trustee and the Manager will not deduct tax from the distributions made out of MLT’s taxable income to the extent that the beneficial Unitholder is:
• An individual (excluding partnership);
• A tax resident Singapore-incorporated company;
• A body of persons registered or constituted in Singapore (e.g. town council, statutory board, registered charity, registered co-operative society, registered trade union, management corporation, club and trade and industry association); and
• A Singapore branch of a foreign company which has presented a letter of approval from the IRAS granting waiver from tax deduction at source in respect of distributions from MLT.
The above tax transparency ruling does not apply to gains from sale of real properties. Such gains, if they are considered as trading gains, are assessable to tax on the Trustee. Where the gains are capital gains, the Trustee will not be assessed to tax and may distribute the gains without tax being deducted at source.
2.5 Group accounting
(a) Subsidiaries
(i) Consolidation
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date on that control ceases.
In preparing the consolidated financial statements, transactions, balances and unrealised gains on transactions between group entities are eliminated. Unrealised losses are also eliminated but are considered an impairment indicator of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.
Non-controlling interests comprise the portion of a subsidiary’s net results of operations and its net assets, which is attributable to the interests that are not owned directly or indirectly by the Unitholders of MLT. They are shown separately in the consolidated Statements of Total Return, Statements of Financial Position and Statements of Movements in Unitholders’ Funds.
128 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
2. Significant accounting policies (continued)
2.5 Group accounting (continued)
(a) Subsidiaries (continued)
(ii) Acquisition of businesses
The acquisition method of accounting is used to account for business combinations by the Group.
The consideration transferred for the acquisition of a subsidiary comprises the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred also includes the fair value of any contingent consideration arrangement and the fair value of any pre-existing equity interest in the subsidiary.
Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date.
On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree at the date of acquisition either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the net identifiable assets acquired is recorded as goodwill.
(iii) Disposals of subsidiaries or businesses
When a change in MLT’s ownership interest in a subsidiary results in a loss of control over the subsidiary, the assets and liabilities of the subsidiary including any goodwill are derecognised.
Any retained interest in the entity is re-measured at fair value. The difference between the carrying amount of the retained investment at the date when control is lost and its fair value is recognised in the Statements of Total Return.
Please refer to the paragraph “Investments in subsidiaries”, for the accounting policy on investments in subsidiaries in the separate financial statements of MLT.
(b) Transactions with non-controlling interests
Changes in MLT’s ownership interest in a subsidiary that do not result in a loss of control over the subsidiary are accounted for as transactions with equity owners of the Group. Any difference between the change in the carrying amounts of the non-controlling interest and the fair value of the consideration paid or received is recognised in a separate reserve within equity attributable to the Unitholders of MLT.
ANNUAL REPORT 2014/2015 129 Notes to the Financial Statements For the financial year ended 31 March 2015
2. Significant accounting policies (continued)
2.6 Investment properties
Investment properties are properties held either to earn rental income or capital appreciation or both. Investment properties are accounted for as non-current assets and are stated at initial cost on acquisition, and at fair value thereafter. Fair values are determined in accordance with the Trust Deed, which requires the investment properties to be valued by independent registered valuers at least once a year, in accordance with the CIS issued by the MAS.
Any increase or decrease in the fair values is credited or charged to the Statements of Total Return.
When an investment property is disposed of, the resulting gain or loss recognised in the Statements of Total Return is the difference between net disposal proceeds and the carrying amount of the investment property.
For taxation purposes, MLT may claim capital allowances on assets that qualify as plant and machinery under the Income Tax Act.
Investment properties under redevelopment
Investment properties under redevelopment are measured at fair values if the fair values are considered to be reliably determinable. Investment properties under redevelopment for which the fair value cannot be determined reliably, but for which the Group expects that the fair value of the properties will be reliably determinable when redevelopment is completed, are measured at cost less impairment until the fair value becomes reliably determinable or redevelopment is completed – whichever is earlier.
2.7 Investments in subsidiaries
Investments in subsidiaries are stated at cost less accumulated impairment losses (Note 2.12) in MLT’s Statement of Financial Position. On disposal of investments in subsidiaries, the difference between net disposal proceeds and the carrying amount of the investment is taken to the Statements of Total Return.
2.8 Property, plant and equipment
(a) Measurement
All property, plant and equipment are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.
The cost of an item of property, plant and equipment includes its purchase price and any costs that are directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by Management.
130 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
2. Significant accounting policies (continued)
2.8 Property, plant and equipment (continued)
(b) Depreciation
Depreciation on property, plant and equipment is calculated using the straight-line method to allocate their depreciable amounts over their estimated useful lives. The estimated useful lives are as follows:
Plant and equipment 5 years
The residual values and useful lives of property, plant and equipment are reviewed, and adjusted as appropriate, at each reporting date. The effects of any revision of the residual values and useful lives are included in the Statements of Total Return for the financial year in which the changes arise.
(c) Subsequent expenditure
Subsequent expenditure relating to property, plant and equipment that has already been recognised is added to the carrying amount of the asset when it is probable that future economic benefits, in excess of the originally assessed standard of performance of the existing asset, will flow to the Group and the cost can be reliably measured. Other subsequent expenditure is recognised as an expense during the financial year in which it is incurred.
(d) Disposal
On disposal of an item of property, plant and equipment, the difference between the net disposal proceeds and its carrying amount is taken to the Statements of Total Return.
2.9 Financial assets
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except those maturing later than 12 months after the reporting date, which are classified as non-current assets. Loans and receivables include “cash and bank balances” and “trade and other receivables” (except for certain non-current receivables from subsidiaries which have been accounted for in accordance with Note 2.7). These financial assets are initially recognised at fair value plus transaction costs and subsequently carried at amortised cost using the effective interest method, less accumulated impairment losses.
The Group assesses at each reporting date whether there is objective evidence that these financial assets are impaired and recognises an allowance for impairment when such evidence exists.
Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy and default or significant delay in payments are objective evidence that these financial assets are impaired.
The carrying amount of these assets is reduced through the use of an impairment allowance account which is calculated as the difference between the carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. When the asset becomes uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are recognised against the same line item in the Statements of Total Return.
The impairment allowance is reduced through the Statements of Total Return in a subsequent period when the amount of impairment loss decreases and the related decrease can be objectively measured. The carrying amount of the asset previously impaired is increased to the extent that the new carrying amount does not exceed the amortised cost had no impairment been recognised in prior periods.
ANNUAL REPORT 2014/2015 131 Notes to the Financial Statements For the financial year ended 31 March 2015
2. Significant accounting policies (continued)
2.10 Financial guarantees
MLT has issued corporate guarantees to banks for bank borrowings of its subsidiaries. These guarantees are financial guarantee contracts as they require MLT to reimburse the banks if the subsidiaries fail to make principal or interest payments when due in accordance with the terms of their borrowings.
Financial guarantee contracts are initially recognised at their fair values.
Financial guarantee contracts are subsequently amortised to the Statements of Total Return over the period of the subsidiaries’ borrowings, unless MLT has incurred an obligation to reimburse the bank for an amount higher than the unamortised amount. In this case, the financial guarantee contracts shall be carried at the expected amount payable to the bank.
2.11 Cash and cash equivalents
Cash and cash equivalents include cash balances and deposits with financial institutions.
2.12 Impairment of non-financial assets
Property, plant and equipment Investments in subsidiaries
Property, plant and equipment and investments in subsidiaries are tested for impairment whenever there is any objective evidence or indication that these assets may be impaired.
For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash inflows that are largely independent of those from other assets. If this is the case, the recoverable amount is determined for the Cash Generating Unit (“CGU”) to which the asset belongs.
If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference between the carrying amount and recoverable amount is recognised as an impairment loss in the Statements of Total Return.
An impairment loss for an asset is reversed if, and only if, there has been a change in the estimates used to determine the asset’s recoverable amount or if there is a change in the events that had given rise to the impairment since the last impairment loss was recognised. The carrying amount of this asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortisation or depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of impairment loss for an asset is recognised in the Statements of Total Return.
2.13 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the Statements of Total Return over the period of the borrowings using the effective interest method.
2.14 Trade payables
Trade payables are initially measured at fair value, and subsequently at amortised cost, using the effective interest method.
132 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
2. Significant accounting policies (continued)
2.15 Derivative financial instruments and hedging activities
The Group uses derivative financial instruments such as interest rate swaps and forward foreign currency contracts to hedge its exposure to interest rate risks and currency risks arising from operational, financing and investment activities. In accordance with its treasury policy, which is in line with the CIS, the Group does not hold or issue derivative financial instruments for trading purposes.
Derivative financial instruments are recognised initially at fair value. Subsequent to initial recognition, derivative financial instruments are re-measured at their fair value.
The method of recognising the resulting gain or loss depends on whether the financial derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.
Fair value changes on derivatives that are not designated or do not qualify for hedge accounting are recognised in Statements of Total Return when the changes arise.
The Group adopts hedge accounting on selected hedge transactions whereby at the inception of the transactions, the Group documents the relationship between the hedging instruments and hedged items, as well as its risk management objective and strategies for undertaking various hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives designated as hedging instruments are highly effective in offsetting changes in fair value or cash flows of the hedged items.
Cash flow hedge
When the Group has a derivative instrument that qualifies as a cash flow hedge, the fair value changes on the effective portion of interest rate swap designated as cash flow hedges are accumulated in the hedging reserve and reclassified to Statement of Total Return as part of the gain or loss when the hedged interest expense on the borrowing is recognised in Statement of Total Return. The fair value changes on the ineffective portion of interest rate swaps are recognised immediately in Statement of Total Return.
Net investment hedge
When the Group has a derivative instrument that qualifies as a net investment hedge in foreign operation, this hedging instrument is accounted for similarly to cash flow hedge. The currency translation differences on the hedging instrument relating to the effective portion of the hedge are accumulated in the foreign currency translation reserve and reclassified to the Statements of Total Return as part of the gain or loss on disposal of the foreign operation. The currency translation differences relating to the ineffective portion of the hedge are recognised immediately in Statement of Total Return.
The carrying amount of a derivative designated as a hedge is presented as a non-current asset or liability if the remaining expected life of the hedged item is more than 12 months and as a current asset or liability if the remaining expected life of the hedged item is less than 12 months.
ANNUAL REPORT 2014/2015 133 Notes to the Financial Statements For the financial year ended 31 March 2015
2. Significant accounting policies (continued)
2.16 Fair value estimation of financial assets and liabilities
The carrying amounts of current financial assets and liabilities carried at amortised cost approximate their fair values.
The fair values of forward currency contracts and interest rate swaps are based on valuations provided by the Group’s bankers. The fair values of forward currency contracts are determined using actively quoted forward currency rates at the reporting date. The fair values of interest rate swaps are calculated as the present value of the estimated future cash flows, discounted at actively quoted interest rates.
The fair values of financial guarantee contracts are determined based on the market price range of banker’s guarantees with similar terms.
2.17 Operating leases
(a) When an entity within the Group is the lessee:
Leases of assets in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are taken to the Statements of Total Return on a straight-line basis over the period of the lease.
When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place.
(b) When an entity within the Group is the lessor:
Assets leased out under operating leases are included in investment properties and are stated at revalued amounts and not depreciated. Rental income (net of any incentives given to lessees) is recognised on a straight-line basis over the lease term.
2.18 Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event where it is probable that such obligation will result in an outflow of economic benefits that can be reasonably estimated.
2.19 Currency translation
(a) Functional and presentation currency
Items included in the financial statements of each entity in the Group are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The consolidated financial statements are presented in Singapore Dollars, which is MLT’s functional currency.
(b) Transactions and balances
Transactions in a currency other than the functional currency (“foreign currency”) are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Currency translation gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the closing rates at the reporting date are recognised in the Statements of Total Return, except for currency translation differences on the net investment in foreign operations, borrowings in foreign currencies and other currency instruments qualifying as net investment hedges for foreign operations, which are included in the currency translation reserve within the Statements of Movements in Unitholders’ Funds of the Group.
134 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
2. Significant accounting policies (continued)
2.19 Currency translation (continued)
(c) Translation of Group entities’ financial statements
The results and financial position of all the group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
(i) Assets and liabilities are translated at the closing rates at the date of the Statements of Financial Position;
(ii) Income and expenses are translated at average exchange rates (unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated using the exchange rates at the dates of the transactions); and
(iii) All resulting exchange differences are taken to the currency translation reserve within the Statements of Movements in Unitholders’ Funds.
(d) Consolidation adjustments
On consolidation, currency translation differences arising from the net investment in foreign operations, borrowings in foreign currencies, and other currency instruments designated as hedges of such investments, are taken to the currency translation reserve. When a foreign operation is sold, such currency translation differences recorded in the currency translation reserve are recognised in the Statements of Total Return as part of the gain or loss on sale.
2.20 Units and perpetual securities
Proceeds from the issuance of units and perpetual securities in MLT are recognised as equity.
Issue expenses relate to expenses incurred in issuance of units and perpetual securities in MLT. The expenses relating to issuance of units and perpetual securities are deducted directly from the net assets attributable to the Unitholders and perpetual securities balance respectively.
2.21 Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to Management who is responsible for allocating resources and assessing performance of the operating segments.
2.22 Distribution policy
MLT’s distribution policy is to distribute at least 90% of its taxable income, comprising substantially its income from the letting of its properties and related property services income after deduction of allowable expenses and allowances, and of its tax-exempt income (if any). Distributions, when paid, will be in Singapore Dollars.
ANNUAL REPORT 2014/2015 135 Notes to the Financial Statements For the financial year ended 31 March 2015
3. Gross revenue, interest income and dividend income
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Rental income 301,172 288,114 130,417 125,130 Service charges 22,258 17,908 18,696 15,693 Other operating income 6,684 4,687 1,713 1,997 Gross revenue 330,114 310,709 150,826 142,820
Interest income - From bank 855 629 137 39 - From subsidiaries - - 11,147 9,382 855 629 11,284 9,421
Dividend income - - 52,102 47,034
4. Property expenses
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Operation and maintenance 7,751 5,968 5,216 3,892 Land rental 9,690 5,714 9,004 5,175 Property and other taxes 17,052 14,438 8,181 5,863 Utilities 2,216 2,476 2,002 2,254 Property and lease management fees 8,439 7,782 4,415 4,176 Marketing expenses 2,356 2,323 1,692 1,908 Others 5,165 4,373 1,582 1,492 52,669 43,074 32,092 24,760
5. Manager’s management fees
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Base fee 22,661 21,116 9,054 8,290 Performance fee 10,032 9,659 4,274 4,251 32,693 30,775 13,328 12,541
136 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
6. Other trust income Included in other trust income are:
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Net foreign exchange gain 13,400 14,585 29,803 9,869
Professional valuation fees (573) (551) (154) (200)
Auditors’ remuneration paid/payable to: - Auditors of MLT (141) (141) (106) (106) - Other auditors* (387) (308) - -
Non-audit fee paid/payable to: - Other auditors* (42) - - -
* Includes the network of member firms of PricewaterhouseCoopers International Limited (PwCIL).
7. Borrowing costs
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Interest expense - Bank and other borrowings 31,573 27,721 - - - Subsidiary - - 12,287 9,990 Financing fees 1,594 1,633 830 1,028 33,167 29,354 13,117 11,018
ANNUAL REPORT 2014/2015 137 Notes to the Financial Statements For the financial year ended 31 March 2015
8. Income tax
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Withholding tax 3,672 3,175 - - Current income tax 6,556 5,519 - - Deferred income tax 18,910 8,331 - - 29,138 17,025 - -
The income tax expense on the results for the financial year differs from the amount that would arise using the Singapore standard rate of income tax due to the following:
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Total return for the year before income tax 289,434 329,177 111,727 236,726
Tax calculated at a tax rate of 17% 49,204 55,960 18,994 40,243
Effects of: - expenses not deductible for tax purposes 22,422 8,467 14,886 1,826 - Income not subject to tax (34,912) (32,092) (7,547) (16,469) - exemption for foreign dividend income under Singapore income tax - - (8,857) (7,996) - Different tax rates in other countries 9,900 3,937 - - - Utilisation of previously unrecognised tax losses - (1,643) - - - Tax transparency ruling (Note 2.4) (17,476) (17,604) (17,476) (17,604) Tax charge 29,138 17,025 - -
9. Earnings per unit The calculation of basic earnings per unit is based on:
Group 2015 2014
Total return attributable to Unitholders of MLT (S$’000) 240,979 292,692
Weighted average number of units outstanding during the year (’000) 2,461,296 2,439,363
Basic and diluted earnings per unit (cents) 9.79 12.00
Diluted earnings per unit is the same as the basic earnings per unit as there are no dilutive instruments in issue during the financial year.
138 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
10. Cash and cash equivalents
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Cash at bank and on hand 68,466 72,367 13,852 11,261 Short-term bank deposits 38,394 41,911 - - 106,860 114,278 13,852 11,261
Short-term bank deposits at the reporting date in 2015 have a weighted average maturity of 3 months (2014: 2 months) from the end of the financial year. The effective interest rate at reporting date is 1.82 % (2014: 1.81%) per annum.
11. Trade and other receivables
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Trade receivables 4,839 5,306 1,820 3,215 Amounts due from subsidiaries (non-trade) - - 109,479 106,454 Dividend receivables - - 18,241 13,067 Other receivables 15,693 10,837 503 371 20,532 16,143 130,043 123,107
The amounts due from subsidiaries are unsecured, interest-free and repayable on demand.
12. Other current assets
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Deposits 1,109 4,514 3 80 Prepayments 9,908 7,550 1,078 1,092 11,017 12,064 1,081 1,172
ANNUAL REPORT 2014/2015 139 Notes to the Financial Statements For the financial year ended 31 March 2015
13. Investment properties
(a) Investment properties
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Beginning of the year 4,235,119 4,050,367 1,754,400 1,618,254 Acquisition of and additions to investment properties 271,064 114,577 64,769 66,081 Net movement in the value of investment properties recognised in the Statements of Total Return 83,976 105,305 (68,529) 70,065 Currency translation difference 41,057 (35,130) - - end of the year 4,631,216 4,235,119 1,750,640 1,754,400
Included in investment properties is S$52,700,000 (2014: S$Nil), of investment property under redevelopment.
Investment properties are stated at fair value based on valuations performed by independent professional valuers. The fair values are generally derived using the following methods:
• Income capitalisation - Properties are valued by capitalising net rental income after property tax at a rate which reflects the present and potential income growth and over the unexpired lease term.
• Discounted cash flow - Properties are valued by discounting the future net income stream over a period to arrive at a present value.
• Direct comparison - Properties are valued using transacted prices for comparable properties in the vicinity and elsewhere with adjustments made for differences in location, tenure, size, shape, design, age and condition of the buildings, availability of car park facilities, dates of transactions and the prevailing market conditions.
• Residual value - Investment properties under redevelopment or development are valued, as a starting point using the income capitalisation method and discounted cash flow method to derive the fair value of the property as if the redevelopment was already completed at reporting date. Deductions from that fair value, such as estimated construction cost and other costs to completion and estimated profit margin required to hold and develop property to completion are made to reflect the current condition of the property under redevelopment and development.
The Manager is of the view that the valuation methods and estimates are reflective of current market conditions.
Details of the properties are shown in the Portfolio Statements.
140 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
13. Investment properties (continued)
(b) Net movement in the value of investment properties
Net movement in the value of investment properties comprises fair value gain/ (loss) of investment properties recognised in the Statements of Total Return.
(c) Fair value hierarchy
The following level presents the investment properties at fair value and classified by level of fair value measurement hierarchy:
• Level 1: quoted prices (unadjusted) in active markets for identical assets;
• Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
• Level 3: inputs for the asset that are not based on observable market data (unobservable inputs).
All properties within MLT’s and the Group’s portfolio are classified within level 3 of the fair value hierarchy.
(d) Reconciliation of Level 3 fair value measurements
The reconciliation between the balances at the beginning of the financial year is disclosed within the investment properties movement table presented in Note 13(a).
ANNUAL REPORT 2014/2015 141 Notes to the Financial Statements For the financial year ended 31 March 2015
13. Investment properties (continued)
(e) valuation techniques and key unobservable inputs
The following table presents the valuation techniques and key inputs that were used to determine the fair value of the investment properties classified under Level 3 of the fair value hierarchy:
Description Valuation techniques Key unobservable inputs
Singapore Income capitalisation Capitalisation rate 2015: 6.00% - 7.50% (2014: 6.00% - 7.50%) Discounted cash flow Discount rate 2015: 7.00% - 8.50% (2014: 8.00%)
Japan Income capitalisation Capitalisation rate 2015: 5.40% - 6.40% (2014: Not applicable)
Discounted cash flow Discount rate 2015: 5.00% - 6.30% (2014: 5.20% - 6.20%)
Hong Kong Income capitalisation Capitalisation rate 2015: 5.00 - 5.25% (2014: 5.50%) Discounted cash flow Discount rate 2015: 8.38% - 8.63% (2014: Not applicable)
South Korea Income capitalisation Capitalisation rate 2015: Not applicable (2014: 8.00% -10.25%) Discounted cash flow Discount rate 2015: 8.00% - 9.10% (2014: 9.75% -11.75%) Direct comparison Adjusted price per square meter 2015: KRW710,000 - KRW1,350,000 (2014: Not applicable)
China Income capitalisation Capitalisation rate 2015: 7.00% - 8.50% (2014: 8.00% - 9.00%) Discounted cash flow Discount rate 2015: 8.51% - 9.87% (2014: Not applicable)
Malaysia Income capitalisation Capitalisation rate 2015: 7.00% - 7.75% (2014: 7.00% - 8.00%)
Vietnam Income capitalisation Capitalisation rate 2015: 11.50% (2014: 11.50%) Direct comparison Adjusted price per square meter 2015: USD291 (2014: Not applicable)
Relationship of key unobservable inputs to fair value
• The higher the capitalisation rate, the lower the fair value. • The higher the discount rate, the lower the fair value. • The higher the adjusted price per square meter, the higher the fair value.
142 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
14. Investments in subsidiaries
MLT 2015 2014 S$’000 S$’000
Equity investments at cost 242,777 233,628 Accumulated impairment (37,536) (37,536) 205,241 196,092
Details of significant subsidiaries are included in Note 30.
15. Loans to subsidiaries Loans to subsidiaries are denominated in the following currencies:
MLT 2015 2014 S$’000 S$’000
Singapore Dollar 305,466 252,353 Hong Kong Dollar 192,288 176,567 Japanese Yen 171,496 212,357 United States Dollar 153,130 108,331 Renminbi 54,343 - 876,723 749,608
The loans to subsidiaries are unsecured and have no fixed repayment terms. The loans denominated in Hong Kong Dollar and Singapore Dollar are interest-free. The weighted average interest rates of the United States Dollar, Japanese Yen and Renminbi loans at reporting date are 1.91% (2014: 0.67%) per annum, 4.32% (2014: 3.32%) per annum and 5.03% (2014: Nil) per annum respectively.
The loans denominated in Hong Kong Dollar and Singapore Dollar are considered to be part of the Company’s net investment in these subsidiaries and are accordingly accounted for in accordance with Note 2.7.
ANNUAL REPORT 2014/2015 143 Notes to the Financial Statements For the financial year ended 31 March 2015
16. Trade and other payables
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Current Trade payables 253 545 218 22 Accruals 26,890 11,490 16,914 6,468 Accrued retention sums 8,322 7,285 8,268 7,017 Amounts due to subsidiaries (non-trade) - - 27,212 22,743 Amounts due to related parties (trade) 10,941 7,619 2,487 1,920 Deposits and advance rental 95,602 94,361 31,272 29,226 Interest payable 8,206 6,598 - - Other payables 13,868 11,659 6,426 8,584 164,082 139,557 92,797 75,980
Non-current Deferred revenue 2,500 2,500 2,500 2,500
Total trade and other payables 166,582 142,057 95,297 78,480
The non-trade amounts due to subsidiaries are unsecured, interest-free and repayable on demand.
Accruals include accrued operating, capital and development expenditures.
17. Borrowings
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Current Term loans 27,600 - - - Revolving credit facilities 29,080 128,712 - - Notes payable - 20,000 - - 56,680 148,712 - -
Non-current Term loans 815,772 890,023 - - Revolving credit facilities 496,570 257,223 - - Notes payable 262,856 159,419 - - Loans from a subsidiary - - 624,503 438,339 1,575,198 1,306,665 624,503 438,339
Total borrowings 1,631,878 1,455,377 624,503 438,339
The above borrowings are unsecured.
144 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
17. Borrowings (continued)
(a) Maturity of borrowings
As at 31 March 2015, the current borrowings have a weighted average maturity of approximately 7 months (2014: 8 months) from the end of the financial year.
The non-current term loans, revolving credit facilities and notes payable mature between 2016 and 2023 (2014: 2015 and 2021). The loans from a subsidiary have no fixed repayment terms and are not expected to be repaid within the next 12 months.
(b) Interest rates
The weighted average effective interest rates of borrowings at the reporting date were as follows:
Group MLT 2015 2014 2015 2014 % % % %
Term loans (current) 1.86 - - - Term loans (non-current) 1.15 1.22 - - Revolving credit facilities (current) 3.02 1.29 - - Revolving credit facilities (non-current) 2.16 1.97 - - Notes payable (current) - 3.30 - - Notes payable (non-current) 2.06 2.80 - - Loans from a subsidiary - - 1.70 1.70
(c) Interest rate risks
The exposure of the borrowings of the Group and MLT to interest rate changes and the contractual repricing dates at the reporting dates (before taking into account the derivatives to swap the floating rates to fixed rates) are as follows:
Variable rates Fixed rates Fixed rates less than less than Fixed rates more than 6 months 1 year 1 to 5 years 5 years Total Group S$’000 S$’000 S$’000 S$’000 S$’000
2015 Borrowings 1,466,158 - 9,500 156,220 1,631,878
2014 Borrowings 1,237,006 20,000 38,952 159,419 1,455,377
ANNUAL REPORT 2014/2015 145 Notes to the Financial Statements For the financial year ended 31 March 2015
17. Borrowings (continued)
(c) Interest rate risks (continued)
Variable rates Fixed rates Fixed rates less than less than Fixed rates more than 6 months 1 year 1 to 5 years 5 years Total MLT S$’000 S$’000 S$’000 S$’000 S$’000
2015 Borrowings 512,134 - 9,500 102,869 624,503
2014 Borrowings 307,910 20,000 - 110,429 438,339
(d) Carrying amounts and fair values
The carrying amounts of current borrowings approximate their fair values. The carrying amounts of non-current borrowings, which are at variable market rates, also approximate their fair values.
The carrying amounts and fair values of fixed rate non-current notes payable and loans from a subsidiary were as follows:
Carrying amounts Fair values 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Group Notes payable (non-current) 156,220 159,419 163,551 161,002
MLT Loans from a subsidiary 102,869 110,429 109,823 116,440
146 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
18. Derivative financial instruments
2015 2014 Contract Fair value Contract Fair value notional Assets/ notional Assets/ amount (liabilities) amount (liabilities) Group S$’000 S$’000 S$’000 S$’000
Interest rate swaps 881,525 (4,241) 750,657 (1,005) Cross currency swaps 233,143 (7,391) 127,598 (3,269) Currency forwards 160,076 9,576 179,364 16,228 (2,056) 11,954
At 31 March 2015, the fixed interest rates on interest rate and cross currency swaps vary from 0.26% to 4.65% (2014: -0.72% to 3.83%) per annum and the floating rates vary from 0.10% to 3.79% (2014: 0.14% to 3.30%) per annum.
2015 2014 Contract Fair value Contract Fair value notional Assets/ notional Assets/ amount (liabilities) amount (liabilities) MLT S$’000 S$’000 S$’000 S$’000
Currency forwards 160,076 9,576 179,364 16,228
Represented by:
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Current assets 18,076 19,381 14,761 16,927 Current liabilities (20,132) (7,427) (5,185) (699) (2,056) 11,954 9,576 16,228
19. Deferred taxation
Group 2015 2014 S$’000 S$’000
Beginning of the year 56,054 47,355 Tax charge to Statements of Total Return 18,910 8,331 Translation difference 2,175 368 End of the year 77,139 56,054
Deferred income tax liabilities comprise mainly deferred income tax provided on fair value gains of investment properties and capital allowances claimed at the applicable tax rates which may be realised upon disposal of investment properties.
ANNUAL REPORT 2014/2015 147 Notes to the Financial Statements For the financial year ended 31 March 2015
20. Units in issue and perpetual securities
(a) Units in issue
MLT 2015 2014 ’000 ’000
Beginning of the year 2,448,706 2,432,010 Creation of new units arising from - Distribution Reinvestment Plan 24,374 16,696 - Settlement of acquisition fees 1,022 - end of the year 2,474,102 2,448,706
(i) MLT had implemented a Distribution Reinvestment Plan in 2013 whereby the Unitholders have the option to receive their distribution in units instead of cash or a combination of units and cash.
24,374,077 new units (2014: 16,695,553) at an issue price range of S$1.067 to S$1.185 (2014: S$1.006 to S$1.281) per unit were issued pursuant to the Distribution Reinvestment Plan.
(ii) 1,022,360 units at an issue price range of S$1.149 to $1.153 per unit were issued in 2015, in respect of the payment of manager’s acquisition fees for the acquisitions of Mapletree Zhengzhou Logistics Park, Mapletree Yangshan Bonded Logistics Park and Flex Hub.
Each unit in MLT represents an undivided interest in MLT. The rights and interests of Unitholders are contained in the Trust Deed and include the right to:
• Receive income and other distributions attributable to the units held;
• Participate in the termination of MLT by receiving a share of all net cash proceeds derived from the realisation of the assets of MLT less any liabilities, in accordance with their proportionate interests in MLT. However, a Unitholder does not have the right to require that any assets (or part thereof) of MLT be transferred to him; and
• Attend all Unitholders’ meetings. The Trustee or the Manager may (and the Manager shall at the request in writing of not less than 50 Unitholders or one-tenth in the number of Unitholders, whichever is lesser) at any time convene a meeting of Unitholders in accordance with the provisions of the Trust Deed.
148 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
20. Units in issue and perpetual securities (continued)
(a) Units in issue (continued)
The restrictions of a Unitholder include the following:
• A Unitholder’s right is limited to the right to require due administration of MLT in accordance with the provisions of the Trust Deed; and
• A Unitholder has no right to request to redeem his units while the units are listed on SGX-ST.
A Unitholder’s liability is limited to the amount paid or payable for any units in MLT. The provisions of the Trust Deed provide that no Unitholder will be personally liable to indemnify the Trustee or any creditor of the Trustee in the event that the liabilities of MLT exceed its assets.
(b) Perpetual securities
The following represents the terms of the perpetual securities:
• These perpetual securities have no fixed redemption date;
• Redemption is at the discretion of MLT. The distribution will be payable semi-annually at the discretion of MLT and will be non-cumulative.
In terms of distribution payments or in the event of winding-up of MLT:
• These perpetual securities rank pari passu with the holders of preferred units (if any) and rank ahead of the Unitholders of MLT, but junior to the claims of all other present and future creditors of MLT.
• MLT shall not declare distribution or pay any distributions to the Unitholders, or make redemption, unless MLT declare or pay any distributions to the holders of the perpetual securities.
These perpetual securities are classified as equity instruments and recorded in equity in the Statements of Movements in Unitholders’ Funds. The S$344,010,000 (2014: S$344,010,000) presented on the Statements of Financial Position represents the S$350,000,000 perpetual securities net of issue costs and include total return attributable to perpetual securities holders from last distribution date.
21. Issue expenses Issue expenses comprise professional, advisory, underwriting, printing and other costs related to issuance of units and perpetual securities of MLT.
ANNUAL REPORT 2014/2015 149 Notes to the Financial Statements For the financial year ended 31 March 2015
22. Commitments
(a) Capital commitments
Development expenditures contracted for at the reporting date but not recognised in the financial statements amounted to S$85,969,422 (2014: S$Nil).
(b) Operating lease commitments
(i) For the Singapore properties, the Group is required to pay Jurong Town Corporation or the Housing and Development Board for annual land rent in respect of certain of its investment properties. The annual land rent is based on market rent in the relevant year of the current lease term and the lease provides that any increase in annual land rent from year to year shall not exceed 5.5% of the annual land rent for the immediate preceding year. The leases are non-cancellable with remaining lease terms of up to 82 years as at 31 March 2015, with options to renew up to a further 30 years for some of the leases. The land rent paid/payable based on prevailing rental rates for the current financial year approximates S$8,853,500 (2014: S$5,058,000).
For certain China properties, the Group is required to pay the Chinese authorities an annual land rent with respect to the properties. The land rent is based on RMB1 to RMB14 per square metre of land area per year in the subject premise. The leases are non-cancellable with remaining lease term of approximately 29 to 47 years as at 31 March 2015. The land rent paid/payable for the current financial year approximates RMB3,106,000 (2014: RMB1,774,000) (S$696,000 (2014: S$367,000)).
For the Malaysia properties, the Group is required to pay the Petaling District Land Office, Klang District Land Office and Kulai Jaya Land Office (“Land Offices”) annual land rent in respect of its investment properties. The annual land rent is based on the classification of land and vary according to the category of land use of the land alienated. The annual land rent is based on prevailing rate according to the Land Offices, land usage, and layer of the land located, and any increase in the annual land rent will be at the Land Offices’ discretion. The land leases are non-cancellable except in the event of land acquisition under Land Acquisition Act 1960 (Act 486) & Rules and have remaining lease terms of between 28 to 91 years as at 31 March 2015. The land rent paid/payable for the current financial year approximates MYR325,000 (2014: MYR325,000) (S$124,000 (2014:S$125,000)).
(ii) The Group leases out its investment properties. The future minimum lease payments receivable under non- cancellable operating leases contracted for at the reporting date but not recognised as receivables, are as follows:
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Not later than 1 year 309,083 290,704 141,041 145,905 Later than 1 year but not later than 5 years 581,576 580,263 245,281 245,817 Later than 5 years 347,955 477,086 171,379 232,694 1,238,614 1,348,053 557,701 624,416
Some of the operating leases are subject to revision of lease rentals at periodic intervals. For the purpose of the above disclosure, the prevailing lease rentals are used.
150 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
23. Financial risk management
Financial risk factors
The Group’s activities expose it to market risk (including currency risk and interest rate risk), credit risk and liquidity risk in the normal course of its business. The Group’s overall risk management strategy seeks to minimise adverse effects from the unpredictability of financial markets on the Group’s financial performance. The Group uses financial instruments such as currency forwards, cross currency swaps, interest rate swaps and foreign currency borrowings to hedge certain financial risk exposures.
The Board of Directors (“BOD”) of the Manager is responsible for setting the objectives and underlying principles of financial risk management for the Group. This is supported by comprehensive internal processes and procedures which are formalised in the Manager’s organisational and reporting structure, operating manuals and delegation of authority guidelines.
(a) Market risk
(i) Currency risk
The Manager’s investment strategy includes investing in the Asia-Pacific region. In order to manage the currency risk involved in investing in assets outside Singapore, the Manager adopts currency risk management strategies that may include:
• The use of foreign currency denominated borrowings to match the currency of the asset investment as a natural currency hedge;
• The use of cross currency swaps to swap a portion of debt in another currency into the currency of the asset investment to reduce the underlying currency exposure; and
• Entering into currency forward contracts to hedge the foreign currency income received from the offshore assets, back into Singapore Dollars.
The Group’s main currency exposure based on the information provided to key management is as follows:
SGD HKD MYR JPY USD Group S$’000 S$’000 S$’000 S$’000 S$’000
2015 Financial assets Cash and cash equivalents 8,755 22,166 9,129 21,786 4,651 Trade and other receivables 2,322 9,550 973 2,256 -
Financial liabilities Trade and other payables (65,905) (17,715) (8,425) (24,053) (714) Borrowings (216,958) (240,027) (84,805) (949,691) (131,317) Net financial liabilities (271,786) (226,026) (83,128) (949,702) (127,380) Less: Net financial liabilities denominated in the respective entities’ functional currencies 271,849 217,149 86,558 887,535 - Cross currency swaps* - - - 51,435 89,026 Net currency exposure 63 (8,877) 3,430 (10,732) (38,354)
ANNUAL REPORT 2014/2015 151 Notes to the Financial Statements For the financial year ended 31 March 2015
23. Financial risk management (continued)
Financial risk factors (continued)
(a) Market risk (continued)
(i) Currency risk (continued)
SGD HKD MYR JPY USD Group S$’000 S$’000 S$’000 S$’000 S$’000
2014 Financial assets Cash and cash equivalents 6,981 20,771 8,626 35,053 5,012 Trade and other receivables 3,586 7,871 1,596 1,284 -
Financial liabilities Trade and other payables (51,869) (15,237) (8,228) (24,349) (1,155) Borrowings (145,352) (220,402) (54,475) (964,261) (70,887) Net financial liabilities (186,654) (206,997) (52,481) (952,273) (67,030) Less: Net financial liabilities denominated in the respective entities’ functional currencies 186,806 198,022 55,656 940,378 - Cross currency swaps* - - - - 66,294 Net currency exposure 152 (8,975) 3,175 (11,895) (736)
* The Group entered into cross currency swaps to swap JPY denominated borrowings into RMB amounting to S$51.4 million (2014: S$Nil), USD denominated borrowings into RMB amounting to S$70.8 million (2014: S$49.6 million), SGD denominated borrowings into RMB amounting to S$Nil (2014: S$35.3 million), USD denominated borrowings into KRW amounting to S$18.2 million (2014: S$16.7 million) and SGD denominated borrowings into KRW amounting to S$113.4 million (2014: S$50.0 million).
MLT’s main foreign currency exposure based on the information provided by key management is as follows:
HKD MYR JPY USD MLT S$’000 S$’000 S$’000 S$’000
2015 Financial assets Cash and cash equivalents - - 2,796 1,856 Trade and other receivables 7,775 86,677 1,788 15,436 Loans to subsidiaries 192,288 - 171,496 153,130
Financial liabilities Trade and other payables (16,638) (9) (1,576) (6,972) Borrowings - - (236,444) (85,583) Net currency exposure 183,425 86,668 (61,940) 77,867
152 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
23. Financial risk management (continued)
Financial risk factors (continued)
(a) Market risk (continued)
(i) Currency risk (continued)
HKD MYR JPY USD MLT S$’000 S$’000 S$’000 S$’000
2014 Financial assets Cash and cash equivalents - - 2,427 1,853 Trade and other receivables 6,341 87,357 2,304 12,909 Loans to subsidiaries 176,567 - 212,357 108,331
Financial liabilities Trade and other payables (15,278) (9) (2,159) (6,039) Borrowings - - (226,863) (47,681) Net currency exposure 167,630 87,348 (11,934) 69,373
The Group’s main foreign currency exposure is in HKD, MYR, JPY and USD (2014: HKD, MYR, JPY and USD). If the HKD, MYR, JPY and USD change against the SGD by 5% (2014: 5%) with all other variables including tax being held constant, the effects arising from the net financial asset/liability position will be as follows:
Increase/(Decrease) 2015 2014 Total return Total return for the year for the year Group S$’000 S$’000
HKD against SGD - strengthened (467) (472) - weakened 423 427 MYR against SGD - strengthened 181 167 - weakened (163) (151) JPY against SGD - strengthened (565) (626) - weakened 511 566 USD against SGD - strengthened (2,019) (39) - weakened 1,826 35
ANNUAL REPORT 2014/2015 153 Notes to the Financial Statements For the financial year ended 31 March 2015
23. Financial risk management (continued)
Financial risk factors (continued)
(a) Market risk (continued)
(i) Currency risk (continued)
MLT’s main foreign currency exposure is in HKD, MYR, JPY and USD (2014: HKD, MYR, JPY and USD). If the HKD, MYR, JPY and USD changed against the SGD by 5% (2014: 5%), with all other variables including tax being held constant, the effects arising from the net financial asset/liability will be as follows:
Increase/(Decrease) 2015 2014 Total return Total return for the year for the year MLT S$’000 S$’000
HKD against SGD - strengthened 9,654 8,823 - weakened (8,734) (7,982) MYR against SGD - strengthened 4,561 4,597 - weakened (4,127) (4,159) JPY against SGD - strengthened (3,260) (628) - weakened 2,949 568 USD against SGD - strengthened 4,098 3,651 - weakened (3,708) (3,303)
(ii) Cash flow and fair value interest rate risk
The Group’s exposure to changes in interest rates relates primarily to interest-earning financial assets and interest-bearing financial liabilities. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market interest rates. The Group has no significant interest-bearing assets.
The Group’s policy is to maintain at least 50% of its borrowings in fixed-rate instruments. The Group’s exposure to cash flow interest rate risks arises mainly from variable-rate borrowings. MLT’s exposure to cash flow interest rate risks arises mainly from borrowings and loans to subsidiaries at variable rates. The Manager manages these cash flow interest rate risks using floating-to-fixed interest rate swaps.
The Group’s and MLT’s borrowings at variable rates on which interest rate swaps have not been entered into, are denominated mainly in JPY (2014: JPY).
If JPY interest rates increase/decrease by 0.5% per annum (2014: 0.5% per annum), the total return will be lower/ higher by S$1,040,000 (2014: S$1,489,000).
154 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
23. Financial risk management (continued)
Financial risk factors (continued)
(b) Credit risk
Credit risk is the potential financial loss resulting from the failure of a customer or counterparty to settle its financial and contractual obligations to the Group, as and when they fall due.
The Manager has established credit limits for customers and monitors their balances on an ongoing basis. Credit evaluations are performed by the Manager before lease agreements are entered into with customers. The risk is also mitigated due to customers placing security deposits or furnishing bankers guarantees for lease rentals. Cash and short-term bank deposits are placed with financial institutions which are regulated.
At the reporting date, there was no significant concentration of credit risk. The maximum exposure to credit risk is represented by the carrying value of each financial asset in the Statement of Financial Position, except as follows:
MLT 2015 2014 S$’000 S$’000
Corporate guarantees provided to banks on subsidiaries’ loans 1,007,378 1,017,038
The Group’s major classes of financial assets are cash and cash equivalents and trade and other receivables.
MLT’s major class of financial assets are cash and cash equivalents, amounts due from subsidiaries and loans to subsidiaries.
The credit risk for net trade receivables based on the information provided to key management is as follows:
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
By geographical areas Singapore 1,820 3,215 1,820 3,215 Hong Kong 584 390 - - People’s Republic of China 1,951 227 - - Malaysia 218 192 - - Korea 150 1,154 - - Vietnam 116 128 - - 4,839 5,306 1,820 3,215
ANNUAL REPORT 2014/2015 155 Notes to the Financial Statements For the financial year ended 31 March 2015
23. Financial risk management (continued)
Financial risk factors (continued)
(b) Credit risk (continued)
(i) Financial assets that are neither past due nor impaired
Bank deposits that are neither past due nor impaired are mainly deposits with banks which are regulated and with high credit-ratings assigned by international credit-rating agencies. Trade and other receivables that are neither past due nor impaired are substantially from companies with a good collection track record with the Group.
(ii) Financial assets that are past due and/or impaired
There is no other class of financial assets that is past due and/or impaired except for trade receivables.
The age analysis of trade receivables past due but not impaired is as follows:
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Past due 0 to 3 months 716 1,282 628 1,083 Past due 3 to 6 months 513 387 468 27 Past due over 6 months 139 24 - 15 1,368 1,693 1,096 1,125
As at 31 March 2015, the Group and MLT had no trade receivables which it had determined to be impaired and the movement in the related allowance for impairment are as follows:
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Allowance for impairment Beginning of the year - 2,766 - 2,380 Allowance utilised - (2,766) - (2,380) End of the year - - - -
156 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
23. Financial risk management (continued)
Financial risk factors (continued)
(c) Liquidity risk
The Manager monitors and maintains a level of cash and cash equivalents deemed adequate to finance the Group’s operations. In addition, the Manager also monitors and observes the CIS by the MAS concerning the leverage limits as well as bank covenants imposed by the banks on the various borrowings.
The table below analyses the maturity profile of the Group’s and MLT’s financial liabilities (including derivative financial liabilities) based on contractual undiscounted cash flows.
Between Between Less than 1 and 2 2 and 5 Over 1 year years years 5 years Group S$’000 S$’000 S$’000 S$’000
2015 Net-settled interest rate and cross currency swaps 9,083 7,698 18,455 8,267 Gross-settled currency forwards - Receipts 72,597 44,374 39,911 3,194 - Payments (69,625) (39,598) (34,112) (2,858) Trade and other payables1 (156,859) - - - Borrowings (83,117) (349,894) (928,432) (363,549) (227,921) (337,420) (904,178) (354,946)
2014 Net-settled interest rate and cross currency swaps 285 3,149 7,352 7,245 Gross-settled currency forwards - Receipts 72,154 53,895 50,561 2,754 - Payments (66,916) (50,349) (42,579) (2,454) Trade and other payables1 (131,985) - - - Borrowings (170,744) (143,571) (862,696) (369,743) (297,206) (136,876) (847,362) (362,198)
ANNUAL REPORT 2014/2015 157 Notes to the Financial Statements For the financial year ended 31 March 2015
23. Financial risk management (continued)
Financial risk factors (continued)
(c) Liquidity risk (continued)
Between Between Less than 1 and 2 2 and 5 Over 1 year years years 5 years MLT S$’000 S$’000 S$’000 S$’000
2015 Gross-settled currency forwards - Receipts 72,597 44,374 39,911 3,194 - Payments (69,625) (39,598) (34,112) (2,858) Trade and other payables1 (92,043) - - - Borrowings - loans from subsidiary (10,620) (10,620) (31,857) (624,503) (99,691) (5,844) (26,058) (624,167)
2014 Gross-settled currency forwards - Receipts 72,154 53,895 50,561 2,754 - Payments (66,916) (50,349) (42,579) (2,454) Trade and other payables1 (74,613) - - - Borrowings - loans from subsidiary (7,458) (7,458) (22,374) (438,339) (76,833) (3,912) (14,392) (438,039)
1 Excludes advanced rental and deferred revenue.
158 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
23. Financial risk management (continued)
Financial risk factors (continued)
(d) Capital risk
The Manager’s objective when managing capital is to optimise the Group’s capital structure within the borrowing limits set out in the CIS by the MAS to fund future acquisitions and asset enhancement works. To maintain or achieve an optimal capital structure, the Manager may issue new units or source additional borrowing from both financial institutions and capital markets.
The Manager monitors capital based on aggregate leverage limit. Under the CIS, all Singapore-listed real estate investment trusts (“S-REITs”) are given the aggregate leverage limit of 60% of its deposited property if a S-REIT has obtained a credit rating from a major credit rating agency.
The aggregate leverage ratio is calculated as total borrowings plus deferred payments divided by total assets.
Group 2015 2014 S$’000 S$’000
Total borrowings and deferred payments 1,640,200 1,462,662 Total assets 4,787,701 4,396,985
Aggregate leverage ratio 34.3% 33.3%
The Group and MLT are in compliance with the borrowing limit requirement imposed by the CIS and all externally imposed capital requirements for the financial year ended 31 March 2015 and 31 March 2014.
(e) Categories of financial assets and financial liabilities
The following table sets out the different categories of financial instruments as at the reporting date:
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Financial derivative assets at fair value through profit or loss 18,076 19,381 14,761 16,927 Financial derivative liabilities at fair value through profit or loss 20,132 7,427 5,185 699 Loans and receivables1 128,502 134,935 1,020,621 884,056 Financial liabilities at amortised cost2 1,788,737 1,587,362 716,546 512,952
1 Excludes prepayment. 2 excludes advanced rental and deferred revenue.
ANNUAL REPORT 2014/2015 159 Notes to the Financial Statements For the financial year ended 31 March 2015
23. Financial risk management (continued)
Financial risk factors (continued)
(f) Fair value measurements
The following table presents financial derivatives at fair value at reporting dates and classified by level of the fair value measurement hierarchy:
(i) Level 1: quoted prices (unadjusted) in active markets for identical assets;
(ii) Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
(iii) Level 3: inputs for the asset that are not based on observable market data (unobservable inputs).
Level 2 2015 2014 S$’000 S$’000
Group Assets Derivative financial instruments 18,076 19,381
Liabilities Derivative financial instruments (20,132) (7,427)
MLT Assets Derivative financial instruments 14,761 16,927
Liabilities Derivative financial instruments (5,185) (699)
The fair values of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) are based on banks’ quotes. The fair values of forward currency contracts are determined using actively quoted forward currency rates at the reporting date. The fair values of interest-rate swaps are calculated as the present value of the estimated future cash flows, discounted at actively quoted interest rates.
The carrying value less impairment provision of trade and other receivables, trade and other payables and loans to subsidiaries approximate their fair values.
24. Intermediate and ultimate holding company With the adoption of FRS 110 Consolidated Financial Statements (which came into effect for annual periods beginning on or after 1 January 2014), for financial reporting purposes, the Group is regarded as a subsidiary of Mapletree Investments Pte Ltd.
Consequentially, the intermediate and ultimate holding company are Mapletree Investments Pte Ltd and Temasek Holdings (Private) Limited respectively. The intermediate and ultimate holding company are incorporated in Singapore.
160 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
25. Significant related party transactions For the purposes of these financial statements, parties are considered to be related to the Group when the Group has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subject to common significant influence. Related parties may be individuals or other entities. The Manager (Mapletree Logistics Trust Management Ltd.) and the property manager (Mapletree Property Management Pte. Ltd.) are fellow subsidiaries of Mapletree Investments Pte Ltd.
During the financial year, other than those disclosed elsewhere in the financial statements, the following significant related party transactions took place at terms agreed between the parties as follows:
Group MLT 2015 2014 2015 2014 S$’000 S$’000 S$’000 S$’000
Management fees paid/payable to the Manager and related parties* 34,394 31,668 14,921 13,433 Property management fees paid/payable to a related party 9,977 8,975 6,000 6,012 Acquisition fees paid/payable to the Manager in relation to the acquisition of properties 2,080 321 2,080 321 Rental and other related income received/receivable from related parties 6,991 8,187 6,971 8,184 Operation and maintenance expenses paid/payable to related parties 1,960 2,221 1,960 2,221 Dividend payment to a related party 237 280 - - Return of capital for preferred equity to a related party 359 353 - - Capital injection into an investment structure by a related company of the Manager 65 - - - Acquisition of properties via the purchase of shares in subsidiaries from a related party 83,573 - 83,573 - Acquisition of property from a related party 34,192 - - - Interest income received from related corporation 43 20 - - Purchase of service from related corporation 77 27 74 25 Interest expense paid to related corporation 1,438 853 - -
* Includes amount capitalised into investment properties.
26. Segment information The Group has determined the operating segments based on the reports reviewed by Management that are used to make strategic decisions. Management comprises the Chief Executive Officer and the Chief Financial Officer.
Management considers the business from a geographic segment perspective. Geographically, Management manages and monitors the business by the seven countries: Singapore, Hong Kong, the People’s Republic of China, Malaysia, Japan, Korea and Vietnam. All geographical locations are in the business of investing in logistics properties, which is the only business segment of the Group.
Management assesses the performance of the geographic segments based on a measure of Net Property Income (“NPI”). Interest income and finance expenses are not allocated to segments, as the treasury activities are centrally managed by the Group.
ANNUAL REPORT 2014/2015 161 Notes to the Financial Statements For the financial year ended 31 March 2015
26. Segment information (continued) The segment information provided to Management for the reportable segments for the year ended 31 March 2015 is as follows:
Hong Singapore Kong PRC Malaysia Japan Korea Vietnam Total S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Gross revenue 150,826 46,470 20,705 15,861 64,546 30,338 1,368 330,114
Net property income 118,733 43,952 15,615 14,449 56,541 26,984 1,171 277,445 Interest and other income 855 Unallocated costs* (24,281) Borrowing costs (33,167) Net investment income 220,852 Net change in fair value of financial derivatives (15,394) Net income 205,458
Net movement in the value of investment properties (68,529) 161,869 11,029 5,687 10,443 (36,399) (124) 83,976
Total return for the year before income tax 289,434
Income tax (29,138) Total return for the year 260,296
Other Segment items Capital expenditure - Investment properties 64,769 137 93,927 35,012 12,698 64,274 247 271,064
Segment assets - Investment properties 1,750,640 1,026,137 337,516 191,794 950,062 365,840 9,227 4,631,216 - Others 1,820 584 1,951 218 - 150 116 4,839 4,636,055 Unallocated assets** 151,646 Consolidated total assets 4,787,701
Segment liabilities 31,490 14,069 7,505 5,741 19,828 16,713 509 95,855 Unallocated liabilities*** 1,803,521 Consolidated total liabilities 1,899,376
162 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
26. Segment information (continued) The segment information provided to Management for the reportable segments for the year ended 31 March 2014 is as follows:
Hong Singapore Kong PRC Malaysia Japan Korea Vietnam Total S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000 S$’000
Gross revenue 142,820 42,186 17,579 12,672 66,479 27,665 1,308 310,709
Net property income 118,060 39,748 13,722 11,468 58,097 25,450 1,090 267,635 Interest and other income 629 Unallocated costs* (18,188) Borrowing costs (29,354) Net investment income 220,722 Net change in fair value of financial derivatives 3,150 Net income 223,872
Net movement in the value of investment properties 70,065 43,261 (5,757) 1,504 2,670 (6,771) 333 105,305
Total return for the year before income tax 329,177
Income tax (17,025) Total return for the year 312,152
Other Segment items Capital expenditure - Investment properties 66,081 331 - 262 11,516 36,359 28 114,577
Segment assets - Investment properties 1,754,400 782,697 214,298 152,842 995,396 327,052 8,434 4,235,119 - Others 3,215 390 227 192 - 1,154 128 5,306 4,240,425 Unallocated assets** 156,560 Consolidated total assets 4,396,985
Segment liabilities 29,248 12,117 5,668 5,402 21,013 20,966 492 94,906 Unallocated liabilities*** 1,569,896 Consolidated total liabilities 1,664,802
* Unallocated costs include Manager’s management fees, Trustee’s fees and other trust expenses. ** Unallocated assets include cash and cash equivalents, other receivables, other current assets and derivative financial instruments. *** Unallocated liabilities include borrowings of S$1,631.9 million (2014: S$1,455.4 million), details of which are included in Note 17.
The revenue from external parties reported to Management is measured in a manner consistent with that of the Statements of Total Return. The Group provides a single product/service - logistics business.
ANNUAL REPORT 2014/2015 163 Notes to the Financial Statements For the financial year ended 31 March 2015
27. Financial ratios
2015 2014 % %
Ratio of expenses to weighted average net assets1 - Including performance component of asset management fees 1.36 1.25 - excluding performance component of asset management fees 1.00 0.88 Portfolio turnover rate2 - 0.59
1 The annualised ratios are computed in accordance with the guidelines of Investment Management Association of Singapore dated 25 May 2005. The expenses used in the computation relate to expenses of the Group, excluding property expenses, borrowing costs, net foreign exchange differences and income tax expense. 2 The annualised ratio is computed based on the lesser of purchases or sales of underlying investment properties of the Trust expressed as a percentage of daily average net asset value in accordance with the formulae stated in the CIS.
28. Events occurring after statement of financial position date The Manager announced a distribution of 1.85 cents per unit for the period from 1 January 2015 to 31 March 2015.
29. New accounting standards and FRS interpretations Below are the mandatory standards that have been published, and are relevant for the Group’s accounting periods beginning on or after 1 April 2015 or later periods and which the Group had not early adopted:
• FRS 103 Business Combinations (effective for annual periods beginning on or after 1 July 2014)
The standard is amended to clarify that an obligation to pay contingent consideration which meets the definition of a financial instrument is classified as a financial liability or as equity, on the basis of the definitions in FRS 32, Financial instruments: Presentation. The standard is further amended to clarify that all non-equity contingent consideration, both financial and non-financial, is measured at fair value at each reporting date, with changes in fair value recognised in profit and loss.
The standard is also amended to clarify that FRS 103 does not apply to the accounting for the formation of any joint arrangement under FRS 111. The amendment also clarifies that the scope exemption only applies in the financial statements of the joint arrangement itself.
The Group will apply this amendment for business combinations taking place on/after 1 April 2015.
• FRS 40 Investment Property (effective for annual periods beginning on or after 1 July 2014)
The standard is amended to clarify that FRS 40 and FRS 103 are not mutually exclusive. The guidance in FRS 40 assists preparers to distinguish between investment property and owner-occupied property. Preparers also need to refer to the guidance in FRS 103 to determine whether the acquisition of an investment property is a business combination.
The Group will apply this amendment for acquisition of investment property taking place on/after 1 April 2015.
164 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
29. New accounting standards and FRS interpretations (continued)
• FRS 108 Operating Segments (effective for annual periods beginning on or after 1 July 2014)
The standard is amended to require disclosure of the judgements made by management in aggregating operating segments. This includes a description of the segments which have been aggregated and the economic indicators which have been assessed in determining that the aggregated segments share similar economic characteristics.
The standard is further amended to require a reconciliation of segment assets to the entity’s assets when segment assets are reported.
This amendment will not result in any changes to the Group’s accounting policies but will require more disclosures in the financial statements.
• FRS 24 Related Party Disclosures (effective for annual periods beginning on or after 1 July 2014)
The standard is amended to include, as a related party, an entity that provides key management personnel services to the reporting entity or to the parent of the reporting entity (‘the management entity’).
The reporting entity is not required to disclose the compensation paid by the management entity to the management entity’s employees or directors, but it is required to disclose the amounts charged to the reporting entity by the management entity for services provided.
This amendment is not expected to have any significant impact on the financial statements of the Group.
• FRS 113 Fair Value Measurement (effective for annual periods beginning on or after 1 July 2014)
The amendment clarifies that the portfolio exception in FRS 113, which allows an entity to measure the fair value of a group of financial assets and financial liabilities on a net basis, applies to all contracts (including non-financial contracts) within the scope of FRS 39.
This amendment is not expected to have any significant impact on the financial statements of the Group.
• FRS 109 Financial Instruments (effective for annual periods beginning on or after 1 January 2018)
The standard replaces guidance in FRS39 Financial Instruments: Recognition and Measurement that relates to the classification and measurement of financial assets, and liabilities those primary measurement categories for financial assets: amortised cost, fair value through other comprehensive income and fair value through profit and loss.
The Group is assessing the impact of the standard and will apply the standard from 1 April 2018.
ANNUAL REPORT 2014/2015 165 Notes to the Financial Statements For the financial year ended 31 March 2015
30. Listing of significant companies in the Group
Country of Name of companies Principal activities incorporation/business Equity holding 2015 2014 % %
MapletreeLog Treasury Company Pte. Ltd. (a) Captive treasury Singapore/Singapore 100 100
MapletreeLog Treasury Company Captive treasury Cayman Islands/Hong Kong 100 100 (HKSAR) Ltd. (a)
Mapletree Topaz Ltd. (g) Investment holding Cayman Islands/Hong Kong 100 100
Mapletree Opal Ltd. (b) Investment holding Cayman Islands/Hong Kong 100 100
MapletreeLog PF (HKSAR) Ltd. (b) Investment holding Cayman Islands/Hong Kong 100 100
MapletreeLog GTC (HKSAR) Ltd. (b) Investment holding Cayman Islands/Hong Kong 100 100
Greatdeal Finance Limited (b) Investment holding BVI/Hong Kong 100 100
Genright Investment Limited (b) Investment holding hong Kong/Hong Kong 100 100
MapletreeLog Ouluo (Shanghai) Ltd. (g) Investment holding Cayman Islands/PRC 100 100
MapletreeLog AIP (Guangzhou) Ltd. (g) Investment holding Cayman Islands/PRC 100 100
MapletreeLog Seastar (Xian) Ltd. (g) Investment holding Cayman Islands/PRC 100 100
Mapletree WND (Wuxi) (HKSAR) Limited (b) Investment holding hong Kong/PRC 100 100
Mapletree Logistics Development Investment holding PRC/PRC 100 100 (Wuxi) Co., Ltd.(c)
MapletreeLog Northwest (Shanghai) Ltd. (g) Investment holding Cayman Islands/PRC 100 100
MapletreeLog Integrated (Shanghai) Investment holding Cayman Islands/PRC 100 100 (Cayman) Ltd. (g)
MapletreeLog AIP (Guangzhou) Investment holding hong Kong/PRC 100 100 (HKSAR) Limited (b)
MapletreeLog Northwest (Shanghai) Investment holding hong Kong/PRC 100 100 (HKSAR) Limited (b)
MapletreeLog Integrated (Shanghai) Investment holding hong Kong/PRC 100 100 (HKSAR) Limited (b)
MapletreeLog Seastar (Xian) Investment holding hong Kong/PRC 100 100 (HKSAR) Limited (b)
Guangzhou Mapletree Eastern American Investment holding PRC/PRC 100 100 Log Limited (c)
Mapletree Logistics Warehouse (Xian) Investment holding PRC/PRC 100 100 Co., Ltd. (c)
MapletreeLog Jinda Warehouse (Shanghai) Investment holding PRC/PRC 100 100 Co., Ltd. (c)
166 BUILDING TODAY, FOR TOMORROW Notes to the Financial Statements For the financial year ended 31 March 2015
30. Listing of significant companies in the Group (continued)
Country of Name of companies Principal activities incorporation/business Equity holding 2015 2014 % %
MapletreeLog Integrated (Shanghai) Co., Ltd. (c) Investment holding PRC/PRC 100 100
Mapletree Emerald (HKSAR) Limited (c) Investment holding hong Kong/PRC 100 -
Mapletree Emerald (ZILP) Limited (c) Investment holding PRC/PRC 100 -
Mapletree Lingang Ltd. (c) Investment holding Cayman Islands/PRC 100 -
Mapletree Lingang Logistics Warehouse Investment holding PRC/PRC 100 - (Shanghai) Co., Ltd. (c)
MapletreeLog Malaysia Holdings Pte. Ltd. (a) Investment holding Singapore/Malaysia 100 100
MapletreeLog (M) Holdings Sdn. Bhd. (d) Investment holding Malaysia/Malaysia 100 100
Semangkuk Berhad (d) (h) Investment holding Malaysia/Malaysia 100 100
MapletreeLog Gyoda (Japan) Investment holding hong Kong/Japan 100 100 (HKSAR) Limited (b)
GK Business Samara Logistics 1 (g)(h) Investment holding Japan/Japan 100 100
GK Business Asagao (g)(h) Investment holding Japan/Japan 97 97
GK Business Hinoki (g)(h) Investment holding Japan/Japan 97 97
MapletreeLog Oakline (Korea) Pte. Ltd. (a) Investment holding Singapore/South Korea 100 100
MapletreeLog MQ (Korea) Pte. Ltd. (a) Investment holding Singapore/South Korea 100 100
Kingston (Korea) Pte. Ltd. (a) Investment holding Singapore/South Korea 100 100
Pyeongtaek (Korea) Pte. Ltd. (a) Investment holding Singapore/South Korea 100 100
Iljuk (Korea) Pte. Ltd. (a) Investment holding Singapore/South Korea 100 100
Dooil (Korea) Pte. Ltd. (a) Investment holding Singapore/South Korea 100 100
Jungbu Jeil (Korea) Pte. Ltd. (a) Investment holding Singapore/South Korea 100 100
Miyang (Korea) Pte. Ltd. (a) Investment holding Singapore/South Korea 100 100
Seoicheon (Korea) Pte. Ltd. (a) Investment holding Singapore/South Korea 100 100
Baekam (Korea) Pte. Ltd. (a) Investment holding Singapore/South Korea 100 -
Majang 1 (Korea) Pte. Ltd. (a) Investment holding Singapore/South Korea 100 -
MapletreeLog First Korea (Yujoo) Co., Ltd. (e) Investment holding South Korea/South Korea 100 100
MapletreeLog Korea (Yongin) Co., Ltd. (e) Investment holding South Korea/South Korea 100 100
MapletreeLog Kingston Co., Ltd. (e) Investment holding South Korea/South Korea 100 100
ANNUAL REPORT 2014/2015 167 Notes to the Financial Statements For the financial year ended 31 March 2015
30. Listing of significant companies in the Group (continued)
Country of Name of companies Principal activities incorporation/business Equity holding 2015 2014 % %
MapletreeLog Pyeongtaek Co., Ltd. (e) Investment holding South Korea/South Korea 100 100
MapletreeLog Iljuk Korea Co., Ltd. (e) Investment holding South Korea/South Korea 100 100
MapletreeLog Dooil Co., Ltd. (e) Investment holding South Korea/South Korea 100 100
MapletreeLog Jungbu Jeil Co., Ltd. (e) Investment holding South Korea/South Korea 100 100
MapletreeLog Miyang Co., Ltd. (e) Investment holding South Korea/South Korea 100 100
Seoicheon Logistics Co., Ltd. (e) Investment holding South Korea/South Korea 100 100
Baekam Logistics Korea Co., Ltd. (e) Investment holding South Korea/South Korea 100 -
Majang1 Logistics Korea Co., Ltd. (e) Investment holding South Korea/South Korea 100 -
MapletreeLog VSIP 1 Warehouse Pte. Ltd. (a) Investment holding Singapore/Vietnam 100 100
Mapletree VSIP 1 Warehouse (Cayman) Investment holding Cayman Islands/Vietnam 100 100 Co., Ltd. (g)
Mapletree First Warehouse (Vietnam) Investment holding Vietnam/Vietnam 100 100 Co., Ltd. (f)
(a) Audited by PricewaterhouseCoopers LLP, Singapore (i) (b) Audited by PricewaterhouseCoopers Limited, Hong Kong (i) (c) Audited by PricewaterhouseCoopers Zhong Tian CPAs Limited Company, PRC (i) (d) Audited by PricewaterhouseCoopers, Malaysia (i) (e) Audited by Samil PricewaterhouseCoopers, Korea (i) (f) Audited by PricewaterhouseCoopers (Vietnam) Limited, Vietnam (i) (g) Not required to be audited under the laws of the country of incorporation. (h) These structured entities have been consolidated in the financial statements in accordance with FRS 110 – Consolidated Financial Statements as the Group is able to demonstrate control on its investment in the structured entities. (i) Part of the network of member firms of PricewaterhouseCoopers International Limited (PwCIL)
31. Authorisation of the financial statements The financial statements were authorised for issue by the Manager and the Trustee on 18 May 2015.
168 BUILDING TODAY, FOR TOMORROW Statistics of Unitholdings As At 29 May 2015
DISTRIBUTION OF UNITHOLDINGS
Size of Unitholdings No. of Unitholders % No. of Units %
1 - 99 131 1.02 5,754 0.00 100 - 1,000 751 5.85 630,017 0.03 1,001 - 10,000 7,330 57.09 37,302,865 1.51 10,001 - 1,000,000 4,590 35.75 215,064,850 8.68 1,000,001 and above 38 0.29 2,223,181,302 89.78 Total 12,840 100.00 2,476,184,788 100.00
LOCATION OF UNITHOLDERS
Country No. of Unitholders % No. of Units %
Singapore 12,468 97.10 2,468,107,784 99.67 Malaysia 218 1.70 4,890,403 0.20 Others 154 1.20 3,186,601 0.13 Total 12,840 100.00 2,476,184,788 100.00
TWENTY LARGEST UNITHOLDERS
No. Name No. of Units %
1 Citibank Nominees Singapore Pte Ltd 448,395,167 18.11 2 Mulberry Pte. Ltd. 351,443,702 14.19 3 Meranti Investments Pte. Ltd. 318,457,440 12.86 4 DBS Nominees (Private) Limited 313,201,058 12.65 5 Mapletree Logistics Properties Pte. Ltd. 154,910,070 6.26 6 Mangrove Pte. Ltd. 154,908,180 6.26 7 hSBC (Singapore) Nominees Pte Ltd 132,847,239 5.36 8 Raffles Nominees (Pte.) Limited 121,702,759 4.91 9 DBSN Services Pte. Ltd. 94,105,101 3.80 10 United Overseas Bank Nominees (Private) Limited 33,115,960 1.34 11 DB Nominees (Singapore) Pte Ltd 20,670,178 0.83 12 BNP Paribas Securities Services 7,061,498 0.29 13 Bank Of Singapore Nominees Pte. Ltd. 6,135,889 0.25 14 UOB Kay Hian Private Limited 6,010,280 0.24 15 DBS Vickers Securities (Singapore) Pte Ltd 5,742,275 0.23 16 ABN Amro Nominees Singapore Pte Ltd 5,406,154 0.22 17 Mapletree Logistics Trust Management Ltd. 4,936,755 0.20 18 OCBC Nominees Singapore Private Limited 4,016,056 0.16 19 OCBC Securities Private Limited 3,930,844 0.16 20 Morgan Stanley Asia (Singapore) Securities Pte Ltd 3,889,733 0.16 Total 2,190,886,338 88.48
ANNUAL REPORT 2014/2015 169 Statistics of Unitholdings As At 29 May 2015
Substantial Unitholders as at 29 May 2015
% of Total No. Name of Company Direct Interest Deemed Interest Issued Capital
1 Temasek Holdings (Private) Limited (1) - 998,050,829 40.30 2 Fullerton Management Pte Ltd (2) - 984,656,147 39.76 3 Mapletree Investments Pte Ltd - 984,656,147 39.76 4 Mulberry Pte. Ltd. 351,443,702 - 14.19 5 Meranti Investments Pte. Ltd. 318,457,440 - 12.86 6 Mapletree Logistics Properties Pte. Ltd. 154,910,070 - 6.26 7 Mangrove Pte. Ltd. 154,908,180 - 6.26
Notes (1) Temasek Holdings (Private) Limited (“Temasek”) is deemed to be interested in the 154,910,070 units held by Mapletree Logistics Properties Pte. Ltd. (“MLP”), 154,908,180 units held by Mangrove Pte. Ltd. (“Mangrove”), 318,457,440 units held by Meranti Investments Pte. Ltd. (“Meranti”), 351,443,702 units held by Mulberry Pte. Ltd. (“Mulberry”), and 4,936,755 units held by Mapletree Logistics Trust Management Ltd. (the “Manager”). MLP, Mangrove, Meranti and Mulberry are wholly owned subsidiaries of Mapletree Investments Pte Ltd (“MIPL”). The Manager is a wholly owned subsidiary of Mapletree Capital Management Pte. Ltd., which is a wholly owned subsidiary of MIPL. MIPL is a wholly owned subsidiary of Fullerton Management Pte Ltd which is in turn a wholly owned subsidiary of Temasek. In addition, Temasek is deemed to be interested in the 13,100,682 units in which DBS Group Holdings Ltd (“DBSH”) has or is deemed to have an interest. Temasek has a more than 20% interest in DBSH. Finally, Temasek is also deemed to be interested in the 294,000 units in which Keppel Corporation Limited (“KCL”) has or is deemed to have an interest. Temasek has a more than 20% interest in KCL. DBSH, MIPL and KCL are independently managed Temasek portfolio companies. Temasek is not involved in their business or operating decisions, including those regarding their positions in the units. (2) Fullerton Management Pte Ltd is deemed to be interested in the 154,910,070 units held by MLP, 154,908,180 units held by Mangrove, 318,457,440 units held by Meranti, 351,443,702 units held by Mulberry, and 4,936,755 units held by the Manager.
Unitholdings of the Directors of the Manager as at 21 April 2015
% of Total No. Name Direct Interest Deemed Interest Issued Capital
1 Paul Ma Kah Woh 855,257 - 0.035 2 Tan Ngiap Joo - - - 3 Cheah Kim Teck 416,000 - 0.017 4 Pok Soy Yoong 567,910 - 0.023 5 Wee Siew Kim - - - 6 Penny Goh - - - 7 Tarun Kataria - 100,000 0.004 8 hiew Yoon Khong 1,360,800 2,756,000 0.166 9 Wong Mun Hoong - - - 10 Chua Tiow Chye - 1,405,001 0.057 11 Ng Kiat 125,000 - 0.005
Free Float Based on the information made available to the Manager as at 29 May 2015, approximately 59% of the units in MLT were held in the hands of the public. Accordingly, Rule 723 of the Listing Manual of the SGX-ST has been complied with.
Issued and Fully Paid UNITS 2,476,184,788 units (voting rights: one vote per unit) Market Capitalisation: S$2,884,755,278.02 (based on closing price of S$1.165 per unit on 29 May 2015)
170 BUILDING TODAY, FOR TOMORROW Interested Person Transactions
The transactions entered into with interested persons during the financial year under the Listing Manual of the Singapore Exchange Securities Trading Limited (“SGX-ST”) and the Property Funds Appendix of the Code on Collective Investment Schemes, are as follows:
Aggregate value of all interested person transactions during the financial year under review (excluding transactions less than S$100,000) Name of Interested Person S$’000
Mapletree Investments Pte Ltd and its subsidiaries or associates - Management fees 34,3941 - Property management fees 9,751 - Acquisition fees related to acquisition of properties 2,080 - Acquisition of properties 83,573
ST Electronics (Data Centre Solutions) Pte Ltd - Lease rental income 9,099 - Licence fees 226
SembWaste Pte Ltd - Operation and maintenance expenses 139
Surbana Site Supervisors Pte Ltd - Provision of services capitalised into investment property 203
HSBC Institutional Trust Services (Singapore) Limited - Trustee fees 648
1 Included amount capitalised into investment properties.
For the purpose of the disclosure, the full contract sum was used where an interested person transaction had a fixed term and contract value, while the annual amount incurred and accrued was used where an interested person transaction had an indefinite term or where the contract sum was not specified.
Saved as disclosed above, there were no additional interested person transactions (excluding transactions of less than S$100,000 each) entered during the financial year under review.
Please also see Significant Related Party Transactions in Note 25 to the financial statements.
ANNUAL REPORT 2014/2015 171 Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN that the 6th Annual General Meeting of the holders of units of Mapletree Logistics Trust (“MLT”, and the holders of units of MLT, “Unitholders”) will be held at 2.30 p.m. on 14 July 2015 (Tuesday), at 10 Pasir Panjang Road, Mapletree Business City, Multipurpose Hall – Auditorium, Singapore 117438 to transact the following businesses:
(A) AS ORDINARY BUSINESS 1. To receive and adopt the Report of HSBC Institutional Trust Services (Singapore) Limited, as trustee of MLT (the “Trustee”), the Statement by Mapletree Logistics Trust Management Ltd., as manager of MLT (the “Manager”), and the Audited Financial Statements of MLT for the financial year ended 31 March 2015 and the Auditor’s Report thereon. (Ordinary Resolution 1)
2. To re-appoint PricewaterhouseCoopers LLP as the Auditor of MLT and to hold office until the conclusion of the next Annual General Meeting of MLT, and to authorise the Manager to fix their remuneration. (Ordinary Resolution 2)
(B) AS SPECIAL BUSINESS To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution, with or without any modifications:
3. That approval be and is hereby given to the Manager, to
(a) (i) issue units in MLT (“Units”) whether by way of rights, bonus or otherwise; and/or
(ii) make or grant offers, agreements or options (collectively, “Instruments”) that might or would require Units to be issued, including but not limited to the creation and issue of (as well as adjustments to) securities, warrants, debentures or other instruments convertible into Units,
at any time and upon such terms and conditions and for such purposes and to such persons as the Manager may in its absolute discretion deem fit; and
(b) issue Units in pursuance of any Instruments made or granted by the Manager while this Resolution was in force (notwithstanding that the authority conferred by this Resolution may have ceased to be in force at the time such Units are issued),
provided that:
(1) the aggregate number of Units to be issued pursuant to this Resolution (including Units to be issued in pursuance of Instruments made or granted pursuant to this Resolution) shall not exceed fifty per cent. (50%) of the total number of issued Units (excluding treasury Units, if any) (as calculated in accordance with sub-paragraph (2) below), of which the aggregate number of Units to be issued other than on a pro rata basis to Unitholders (including Units to be issued in pursuance of Instruments made or granted pursuant to this Resolution) shall not exceed twenty per cent. (20%) of the total number of issued Units (excluding treasury Units, if any) (as calculated in accordance with sub-paragraph (2) below);
(2) subject to such manner of calculation as may be prescribed by Singapore Exchange Securities Trading Limited (the “SGX-ST”) for the purpose of determining the aggregate number of Units that may be issued under sub-paragraph (1) above, the total number of issued Units (excluding treasury Units, if any) shall be based on the number of issued Units (excluding treasury Units, if any) at the time this Resolution is passed, after adjusting for:
(a) any new Units arising from the conversion or exercise of any Instruments which are outstanding or subsisting at the time this Resolution is passed; and
(b) any subsequent bonus issue, consolidation or subdivision of Units;
172 BUILDING TODAY, FOR TOMORROW Notice of Annual General Meeting
(3) in exercising the authority conferred by this Resolution, the Manager shall comply with the provisions of the Listing Manual of the SGX-ST for the time being in force (unless such compliance has been waived by the SGX-ST) and the trust deed constituting MLT (as amended) (the “Trust Deed”) for the time being in force (unless otherwise exempted or waived by the Monetary Authority of Singapore);
(4) unless revoked or varied by Unitholders in a general meeting, the authority conferred by this Resolution shall continue in force until (i) the conclusion of the next Annual General Meeting of MLT or (ii) the date by which the next Annual General Meeting of MLT is required by applicable regulations to be held, whichever is earlier;
(5) where the terms of the issue of the Instruments provide for adjustment to the number of Instruments or Units into which the Instruments may be converted in the event of rights, bonus or other capitalisation issues or any other events, the Manager is authorised to issue additional Instruments or Units pursuant to such adjustment notwithstanding that the authority conferred by this Resolution may have ceased to be in force at the time the Instruments or Units are issued; and
(6) the Manager and the Trustee, be and are hereby severally authorised to complete and do all such acts and things (including executing all such documents as may be required) as the Manager or, as the case may be, the Trustee may consider expedient or necessary or in the interest of MLT to give effect to the authority conferred by this Resolution.
(Please see Explanatory Note) (Ordinary Resolution 3)
BY ORDER OF THE BOARD Mapletree Logistics Trust Management Ltd. (Company Registration No. 200500947N) As Manager of Mapletree Logistics Trust
Wan Kwong Weng Joint Company Secretary
Singapore 26 June 2015
Notes:
1. A Unitholder entitled to attend and vote at the Annual General Meeting is entitled to appoint not more than two proxies to attend and vote in his/her stead. A proxy need not be a Unitholder.
2. Where a Unitholder appoints more than one proxy, the appointments shall be invalid unless he/she specifies the proportion of his/her holding (expressed as a percentage of the whole) to be represented by each proxy.
3. The proxy form must be lodged at the Manager’s registered office at 10 Pasir Panjang Road, #13-01 Mapletree Business City, Singapore 117438 not later than 2.30 p.m. on 12 July 2015 being 48 hours before the time fixed for the Annual General Meeting.
ANNUAL REPORT 2014/2015 173 Notice of Annual General Meeting
Personal data privacy:
By submitting an instrument appointing a proxy(ies) and/or representative(s) to attend, speak and vote at the Annual General Meeting and/or any adjournment thereof, a Unitholder (i) consents to the collection, use and disclosure of the Unitholder’s personal data by the Manager and the Trustee (or their agents) for the purpose of the processing, administration and analysis by the Manager and the Trustee (or their agents) of proxies and representatives appointed for the Annual General Meeting (including any adjournment thereof) and the preparation and compilation of the attendance lists, minutes and other documents relating to the Annual General Meeting (including any adjournment thereof), and in order for the Manager and the Trustee (or their agents) to comply with any applicable laws, listing rules, regulations and/or guidelines (collectively, the “Purposes”), (ii) warrants that where the Unitholder discloses the personal data of the Unitholder’s proxy(ies) and/or representative(s) to the Manager and the Trustee (or their agents), the Unitholder has obtained the prior consent of such proxy(ies) and/or representative(s) for the collection, use and disclosure by the Manager and the Trustee (or their agents) of the personal data of such proxy(ies) and/or representative(s) for the Purposes, and (iii) agrees that the Unitholder will indemnify the Manager and the Trustee in respect of any penalties, liabilities, claims, demands, losses and damages as a result of the Unitholder’s breach of warranty.
Explanatory Note:
Ordinary Resolution 3
The Ordinary Resolution 3 above, if passed, will empower the Manager from the date of this Annual General Meeting until (i) the conclusion of the next Annual General Meeting of MLT or (ii) the date by which the next Annual General Meeting of MLT is required by the applicable regulations to be held, whichever is earlier, to issue Units and to make or grant instruments (such as securities, warrants or debentures) convertible into Units and issue Units pursuant to such instruments, up to a number not exceeding fifty per cent. (50%) of the total number of issued Units (excluding treasury Units, if any) with a sub-limit of twenty per cent. (20%) for issues other than on a pro rata basis to Unitholders.
For determining the aggregate number of Units that may be issued, the percentage of issued Units will be calculated based on the issued Units at the time the Ordinary Resolution 3 above is passed, after adjusting for new Units arising from the conversion or exercise of any Instruments which are outstanding at the time this Resolution is passed and any subsequent bonus issue, consolidation or subdivision of Units.
Fund raising by issuance of new Units may be required in instances of property acquisitions or debt repayments. In any event, if the approval of Unitholders is required under the Listing Manual of the SGX-ST and the Trust Deed or any applicable laws and regulations in such instances, the Manager will then obtain the approval of Unitholders accordingly.
174 BUILDING TODAY, FOR TOMORROW IMPORTANT MAPLETREE LOGISTICS TRUST 1. For investors who have used their CPF monies to buy units in Mapletree Logistics Trust, (Constituted in the Republic of Singapore this Annual Report is forwarded to them at the request of their CPF Approved Nominees and is sent solely FOR INFORMATION ONLY. pursuant to a Trust Deed dated 5 July 2004 (as amended)) 2. This Proxy Form is not valid for use by CPF investors and shall be ineffective for all intents and purposes if used or is purported to be used by them. 3. CPF Investors who wish to attend the Annual General Meeting as observers have to submit their requests through their CPF Approved Nominees within the time frame specified. If they also wish to vote, they must submit their voting instructions to the CPF Approved Proxy Form Nominees within the time frame specified to enable them to vote on their behalf. th 4. PLEASE READ THE NOTES TO THE PROXY FORM. 6 Annual General Meeting Personal data privacy By submitting an instrument appointing a proxy(ies) and/or representative(s), a Unitholder of Mapletree Logistics Trust accepts and agrees to the personal data privacy terms set out in the Notice of Annual General Meeting dated 26 June 2015.
I/We
(Name(s) and NRIC/Passport/Company Registration Number(s)) of (Address) being a Unitholder/Unitholders of Mapletree Logistics Trust (“MLT”), hereby appoint:
Name Address NRIC/Passport Number Proportion of Units (%)
and/or (delete as appropriate)
Name Address NRIC/Passport Number Proportion of Units (%)
or, both of whom failing, the Chairman of the 6th Annual General Meeting as my/our proxy/proxies to attend and to vote for me/us on my/our behalf and if necessary, to demand a poll, at the 6th Annual General Meeting of MLT to be held at 2.30 p.m. on 14 July 2015 (Tuesday), at 10 Pasir Panjang Road, Mapletree Business City, Multipurpose Hall - Auditorium, Singapore 117438 and at any adjournment thereof. I/We direct my/our proxy/proxies to vote for or against the resolutions to be proposed at the 6th Annual General Meeting as indicated hereunder. If no specific direction as to voting is given, the proxy/proxies will vote or abstain from voting at his/her/their discretion, as he/she/they may on any other matter arising at the 6th Annual General Meeting.
No. Ordinary Resolutions For* Against* ORDINARY BUSINESS
1. To receive and adopt the Trustee's Report, the Manager’s Statement, the Audited Financial Statements of MLT for the financial year ended 31 March 2015 and the Auditor’s Report thereon.
2. To re-appoint PricewaterhouseCoopers LLP as Auditor and to authorise the Manager to fix the Auditor’s remuneration.
SPECIAL BUSINESS
3. To authorise the Manager to issue Units and to make or grant convertible instruments.
* If you wish to exercise all your votes “For” or “Against”, please tick (√) within the box provided. Alternatively, please indicate the number of votes as appropriate.
Dated this day of 2015
Total number of Units held
Signature(s) of Unitholder(s) or Common Seal of Corporate Unitholder ANNUAL REPORT 2014/2015 175 Fold the flap here for sealing
Postage will be paid by addressee. For posting in Singapore only.
BUSINESS REPLY SERVICE PERMIT NO. 08987
The Company Secretary Mapletree Logistics Trust Management Ltd. (as Manager of Mapletree Logistics Trust) 10 Pasir Panjang Road #13-01 Mapletree Business City Singapore 117438
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IMPORTANT: PLEASE READ THE NOTES TO PROXY FORM BELOW
Notes to Proxy Form 1. A unitholder of MLT (“Unitholder”) entitled to attend and vote at the Annual General Meeting is entitled to appoint one or two proxies to attend and vote in his/her stead. 2. Where a Unitholder appoints more than one proxy, the appointments shall be invalid unless he/she specifies the proportion of his/her holding (expressed as a percentage of the whole) to be represented by each proxy. 3. A proxy need not be a Unitholder. 4. A Unitholder should insert the total number of Units held. If the Unitholder has Units entered against his/her name in the Depository Register maintained by The Central Depository (Pte) Limited (“CDP”), he/she should insert that number of Units. If the Unitholder has Units registered in his/her name in the Register of Unitholders of MLT, he/she should insert that number of Units. If the Unitholder has Units entered against his/her name in the said Depository Register and registered in his/her name in the Register of Unitholders, he/she should insert the aggregate number of Units. If no number is inserted, this proxy form will be deemed to relate to all the Units held by the Unitholder. 5. The instrument appointing a proxy or proxies (the “Proxy Form”) must be deposited at the Manager’s registered office at 10 Pasir Panjang Road, #13-01 Mapletree Business City, Singapore 117438 not later than 2.30 p.m. on 12 July 2015, being 48 hours before the time set for the Annual General Meeting. 6. Completion and return of the Proxy Form shall not preclude a Unitholder from attending and voting at the Annual General Meeting. Any appointment of a proxy or proxies shall be deemed to be revoked if a Unitholder attends the Annual General Meeting in person, and in such event, the Manager reserves the right to refuse to admit any person or persons appointed under the Proxy Form, to the Annual General Meeting. 7. The Proxy Form must be executed under the hand of the appointor or of his/her attorney duly authorised in writing. Where the Proxy Form is executed by a corporation, it must be executed either under its common seal or under the hand of its attorney or a duly authorised officer. 8. Where the Proxy Form is signed on behalf of the appointor by an attorney or a duly authorised officer, the power of attorney or other authority (if any) under which it is signed, or a notarially certified copy of such power or authority must (failing previous registration with the Manager) be lodged with the Proxy Form, failing which the Proxy Form may be treated as invalid. 9. The Manager shall be entitled to reject a Proxy Form which is incomplete, improperly completed or illegible or where the true intentions of the appointor are not ascertainable from the instructions of the appointor specified on the Proxy Form. In addition, in the case of Units entered in the Depository Register, the Manager may reject a Proxy Form if the Unitholder, being the appointor, is not shown to have Units entered against his/her name in the Depository Register as at 48 hours before the time appointed for holding the Annual General Meeting, as certified by CDP to the Manager. 10. All Unitholders will be bound by the outcome of the Annual General Meeting regardless of whether they have attended or voted at the Annual General Meeting. 11. At any meeting, a resolution put to the vote of the meeting shall be decided on a show of hands unless a poll is (before or on the declaration of the result of the show of hands) demanded by the Chairman or by five or more Unitholders present in person or by proxy, or holding or representing one-tenth in value of the Units represented at the meeting. Unless a poll is so demanded, a declaration by the Chairman that such a resolution has been carried or carried unanimously or by a particular majority or lost shall be conclusive evidence of the fact without proof of the number or proportion of the votes recorded in favour of or against such resolution. 12. On a show of hands, every Unitholder who (being an individual) is present in person or by proxy or (being a corporation) is present by one of its officers as its proxy shall have one vote. On a poll, every Unitholder who is present in person or by proxy shall have one vote for every Unit of which he/she is the Unitholder. A person entitled to more than one vote need not use all his/her votes or cast them the same way.
2nd176 fold here BUILDING TODAY, FOR TOMORROW Corporate Directory
The Manager Management Team Property Management Mapletree Logistics Trust Management Ltd. Ms Ng Kiat Mr Tan Wee Seng Company registration number: Chief Executive Officer Head, Regional Development 200500947N Management of the Sponsor Ms Wong Mei Lian Chief Financial Officer Mr Foo Say Chiang The Manager’s Registered Office Head, Group Property Management Ms Chen Tze Hui of the Sponsor 10 Pasir Panjang Road Head, Asset Management #13-01 Mapletree Business City Singapore 117438 Mr Gregory Lui Unit Registrar T: (65) 6377 6111 Senior Vice President, Portfolio Boardroom Corporate & Advisory F: (65) 6273 2281 Management & Investor Relations Services Pte. Ltd. Investor Relations Fax: (65) 6273 2007 Mr Ong Khian Heng 50 Raffles Place W: www.mapletreelogisticstrust.com Director, Investment #32-01 Singapore Land Tower E: [email protected] Mr Choong Chia Yee Singapore 048623 Vice President, Finance T: (65) 6536 5355 Board of Directors F: (65) 6438 8710 Ms Natalie Wong Mr Paul Ma Kah Woh Vice President, Treasury Chairman & Non-Executive Director Trustee Ms Lum Yuen May Mr Tan Ngiap Joo Vice President, Investor Relations HSBC Institutional Trust Services Independent Director & AC Chairman (Singapore) Limited Mr Nick Chung Mr Cheah Kim Teck General Manager, China Registered Address: Independent Director & AC Member 21 Collyer Quay Mr David Won #10-02 HSBC Building Mr Pok Soy Yoong General Manager, Hong Kong Singapore 049320 Independent Director & AC Member Ms Yuko Shimazu Correspondence Address: Mr Wee Siew Kim General Manager, Japan 21 Collyer Quay Independent Director & AC Member Mr Winston Lok #03-01 HSBC Building Mrs Penny Goh Deputy General Manager, Malaysia Singapore 049320 Independent Director T: (65) 6658 6906 Ms Jean Kam F: (65) 6534 5526 Mr Tarun Kataria General Manager, Singapore Independent Director Mr Jacob Chung Auditor Mr Hiew Yoon Khong General Manager, South Korea Non-Executive Director PricewaterhouseCoopers LLP Mr Victor Liu 8 Cross Street #17-00 Mr Wong Mun Hoong General Manager, Vietnam PWC Building Non-Executive Director Singapore 048424 Mr Chua Tiow Chye Corporate Services T: (65) 6236 3388 Non-Executive Director F: (65) 6236 3300 Mr Wan Kwong Weng Ms Ng Kiat Joint Company Secretary Partner-in-charge: Mr Choo Eng Beng Executive Director & CEO Ms See Hui Hui (Appointed from the financial year Joint Company Secretary ended 31 March 2015) Mapletree Logistics Trust Management Ltd. (As Manager of Mapletree Logistics Trust) Co. Reg. No.: 200500947N
10 Pasir Panjang Road #13-01 Mapletree Business City Singapore 117438
Tel: +65 6377 6111 Fax: +65 6273 2281 This report is Investor Relations Fax: +65 6273 2007 printed on paper certified according to the FSCTM standard. For Email: [email protected] more information www.mapletreelogisticstrust.com please visit fsc.org